Senator Elizabeth Warren labels the GENIUS Act as crypto corruption, raising regulatory concerns over stablecoins.
- Senator Warren labels GENIUS Act as “crypto corruption” bill.
- Demands for stricter anti-money laundering measures.
- Potential stablecoin market disruption in the U.S.
Senator Elizabeth Warren denounced the GENIUS Act on May 20, 2025, warning of Trump profiteering and financial instability, seeking tighter crypto oversight.
This development highlights ongoing regulatory debates, emphasizing the need for safeguarding consumer interests and ensuring financial compliance.
Warren Leads Charge Against GENIUS Act
Senator Elizabeth Warren condemned the proposed GENIUS Act by referencing concerns over “crypto corruption” and its impact on national security. Several Democratic Senators echoed her sentiments, emphasizing the necessity for stricter regulation.
The Act seeks to establish regulatory oversight on stablecoins, distributing power among the Treasury, Federal Reserve, and FDIC. This heightened supervision aims to address potential financial risks posed by unregulated digital assets.
Stablecoins Under Threat: Market Implications
The GENIUS Act’s introduction could initiate uncertainty in the stablecoin sector, particularly affecting USDC and USDT. Industry figures anticipate ramifications for crypto markets, with heightened scrutiny from regulatory bodies.
Financial analysts suggest increased volatility in crypto markets, spotlighting implications for investment, liquidity shifts, and potential adjustments in DeFi protocols reliant on stablecoins.
Regulatory History Mirrors Current Concerns
Similar legislations like the STABLE Act previously led to volatility, reflecting the sector’s sensitivity to regulation changes. Stakeholders remain cautious about potential outcomes from restrictive policies.
Industry experts, drawing from past instances, anticipate that stricter regulations could lead to temporary instability but ultimately enforce more secure and transparent crypto environments.
“Nearly all the changes made in recent weeks make the bill stricter on stablecoin issuers when compared to the version the Senate Banking Committee voted on.” – Alex Thorn, Head of Research, Galaxy Digital
“There is no excuse for Congress to pass a crypto bill that will turbocharge Trump’s corruption.” – Elizabeth Warren, U.S. Senator
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