Elizabeth Warren: "GENIUS Act will cost Americans dearly... resembles the 2008 financial crisis bill"

U.S. Democratic Senator Elizabeth Warren sharply criticized President Trump for recently signing the GENIUS Act. She argued that the law was crafted at the industry's initiative and that ordinary citizens would ultimately bear its burden.

According to cryptocurrency-focused media outlet Decrypt on the 26th (local time), Senator Warren said in an interview with Vanity Fair, "The cryptocurrency industry has essentially created its own legislation," stressing, "Even if strong regulation is needed, industry-driven legislation is a mistake."

The GENIUS Act was officially enacted earlier this month after President Trump signed it. The law establishes a legal framework for the issuance and trading of stablecoins, and since then, large banks and retail companies have shown sharply increased interest in related assets.

Senator Warren compared this bill to the 2000 Commodity Futures Modernization Act. That Act relaxed regulation of OTC derivatives and is assessed to have been the catalyst for the 2008 global financial crisis. She recalled, "At that time, the derivatives industry directly drafted the bill and submitted it to Congress. While it looked like regulation, it actually contained provisions favorable to the industry." She emphasized, "When the government represents the interests of industries, only a few become wealthy, while most people end up being harmed."

Similar concerns have been raised in academia. Sergi Basco, a professor at the University of Barcelona in Spain, pointed out, "Legalization may cause misunderstanding about the stability of stablecoins," and warned, "There is a risk that some so-called blue-chip companies' stablecoins will be perceived as a standard."

Professor Basco also explained, "Even if stablecoins are collateralized by U.S. Treasury bonds, price volatility and liquidity risks remain, and the risk of a bank run, as seen in the SVB (Silicon Valley Bank) case, cannot be fully ruled out."

Meanwhile, Senator Warren also expressed concern that billionaires could use stablecoins to collect user data and dominate the competitive ecosystem. She added, "Elon Musk, Jeff Bezos, and Mark Zuckerberg could issue stablecoins to track consumer behavior and dominate the market."