• Warren describes the GENIUS Act as worse than nothing.
• She associates the crypto lobbying with the errors of the 2008 financial crisis.
• The USD1 stablecoin deal with Trump sounds the alarm on security and corruption.

Senator Elizabeth Warren has been a harsh opponent of the GENIUS Act, calling it even worse than not having any regulations on crypto at all. She cautioned that the bill, adopted on a heavy bipartisan vote to regulate stablecoins, absurdly gives the crypto lobby a dangerous boost to its efforts to re-create the ineffective financial regulation that led to the 2008 crisis.

The Massachusetts Democrat mentioned that the GENIUS Act, proposed by President Trump and Republicans in Congress, is aimed at the enhancement of the USD1 stablecoin market. Warren said this would mean corruption, as the Trump-affiliated entities will regulate their own financial products for the first time in U.S history. She was worried about how this would undermine national security, consumer protection, and financial stability, which could cause another financial meltdown.

Crypto Lobbying Risks Mirror the 2008 Collapse

Warren made touching comparisons between the current crypto industry’s drive to have government approval and the run-up to the financial crash of 2008. She explained that investors caused the 2008 meltdown through deregulation, designing the system to benefit the industry at the expense of the people, which ultimately led to a $700 billion taxpayer bailout. She warned against repeating those mistakes, especially when laws like the GENIUS Act appear designed to serve corporate interests rather than the average American.

Warren argues that the GENIUS Act is full of loopholes that will enable Big Tech and billionaires to launch stablecoins, which might achieve the power to track user data and garner undue market advantages. She cautioned that the consequences of such unregulated projects could once more require government bailouts at an expensive cost. Although there are certain allegations that the bill prohibits direct issuance of stablecoins by non-financial technology firms, Warren added that the bill still subjects consumers to the danger of unregulated stablecoin growth without proper risk management.

Controversy Over Trump-Linked USD1 Stablecoin Deal

Another point of criticism by Warren was on crypto investments by the Trump family, since she cited a dubious transaction between World Liberty Financial (co-founded by Eric Trump) and investors linked to Abu Dhabi. She said this setup has made USD1 one of the best stablecoins, but has also posed national security threats due to the involvement of foreign governments. She blamed the GENIUS Act for lacking sufficient anti-money laundering provisions and safeguards against misuse by international competitors, calling it a sketchy crypto deal that Congress should not pass.

The Senate’s procedural passage of the bill has boosted political polarization, with Democrats like Elizabeth Warren and Maxine Waters opposing it as crypto corruption enabled by legislation. The words of Warren highlight the concerns that such legislation can continue the financial benefits of President Trump in the crypto transactions at the cost of exposing the entire economy and consumers to dangers.