Elizabeth Warren Criticizes GENIUS Act for Inadequate Crypto Consumer Protections

US Senator Elizabeth Warren criticized the recently approved GENIUS Act, claiming it exposes Americans to risks associated with cryptocurrencies. Despite bipartisan support, she argues that the act lacks adequate consumer protections.

Warren stated stablecoin issuers would operate under insufficient oversight.
She highlighted loopholes that could be exploited by industry insiders despite mandatory reserves and audits.
Warren expressed concern that limited regulatory powers for the SEC and DOJ could endanger consumers.
She noted that foreign investors might use stablecoins for speculative trading without safeguards.
Warren linked the bill's passage to potential conflicts of interest among government officials influenced by crypto lobbyists.
She drew parallels to past financial crises caused by poorly regulated industries.
Warren called for Congress to address these loopholes before the regulatory structure is fully implemented.

Warren emphasized that weak oversight will negatively impact everyday Americans.