Elizabeth Warren: American People Will ‘Pay the Price’ for GENIUS Act

Senator Elizabeth Warren (D-MA) has made the recently adopted genius law and says that the American people “will pay the prize” for the groundbreaking crypto legislation.

The law, which was signed earlier this month by President Donald Trump, offers legal clarity for Stablecoins. It draws up a framework for the publishing and acting of Stablecoins, which has led to an increased interest in them from banks and large retailers.

In An interview of Vanity exhibitionWarren acknowledged that the US need ‘strong crypto legislation’, but added that “jamming by industry is a mistake.”

“But if we are going to ratify a radically crypto control framework, we have to do it well,” she said.

Warren also claimed that the expenditure for Crypto industry to lobbying ‘had blown everything through that Washington has seen earlier’ and led to the industry being able to write ‘its own legislation’.

The senator tried to provide historical parallels with the Genius Act and remembered the structure of the 2008 financial crisis.

“We have seen that film before, when the industry writes its own legislation,” she said, this time referring to the traditional banking sector.

Warren compared the brilliant action with the Commodity Futures Modernization Act of 2000A bill that meant that freely available derivatives (OTC) were largely not regulated in the US. Many analysts And commentators are of the opinion that OTC derivatives – such as credit -standard waps based on American housing loans – made an important contribution to the 2008 financial crisis.

“That was in 2000, when the derivatives industry-this kind of small, out-to-the-side, esoteric financial product group-to Washington was offered and said:” Here is a bill, regulate us please “and the legislators handed over a bill that gave the industry weakly and the appearance of the US government.”

Warren said that when the American government “works for such industries, a handful of people really get rich and the American people pays the prize.”

Some concern of Warren reflect that from Professor Sergi Basco of the economy, who teaches at the University of Barcelona and recently shared his views on the Genius Act in an OP-ED Op The conversation.

“One of the worries I spoke in my note in The conversation Looks very much like what I think behind Elizabeth Warren’s comments, “he said Decodeer. “By making a law, it gives stablecoins a suspicion of safety.”

He reasoned that if people see “good companies” who spend Stablecoins, they can assume that all Stablecoins are published by companies of equally good reputations.

“It is also not clear that the emennal from private stablecoins are sufficiently regulated to prevent potential bank runs,” he said. “In principle, digital token will be supported by American treasury (or similar). However, the value of American treasuries fluctuates and having safe assets is not a guarantee to exclude bank runs such as SVB.”

He referred to Silicon Valley Bank, who was closed in May 2023 in the middle of a bank run. The FDIC had to intervene to ensure that deposits could withdraw their money.

Senator Warren, who has long been critical of the crypto industry, also repeated her criticism of Trump’s trip In the world of memecoins. In the same Vanity exhibition Interview, Warren also criticized Trump’s decision to dissolve the Crypto enforcement unit of the Ministry of Justice and claimed that he called for the SEC to “withdraw to crypto enforcement.”

In the past, the senator has been vocal about how she believes that Stablecoins can eventually be abused by large companies. In a statement shared with Decrypt Earlier this month, Warren said: “billionaires such as Elon Musk, Jeff Bezos and Mark Zuckerberg could launch Stablecoins who follow your purchases, exploit your data and press out competitors.”