Sen. Elizabeth Warren has issued a searing rebuke of the GENIUS Act, warning it may empower tech giants and wealthy financiers to create crypto-based currencies capable of tracking user behavior. She cautions that these stablecoins could follow consumer purchases , collect consumer data, and push out smaller competitors. Senator Warren pushes for more protection regarding the GENIUS Act In a post on X, Warren had doubled her demand for stronger safety measures, saying the bill should not be used as a “bludgeon” for “tech billionaires” to prioritize their self-interest over user safety. If Congress doesn’t fix the GENIUS Act, billionaires like Elon Musk and Jeff Bezos could launch stablecoins that track your purchases, exploit your data, and squeeze out competitors. These billionaires will come begging for a taxpayer bailout when it inevitably blows up. pic.twitter.com/viKxVhdcsd — Elizabeth Warren (@SenWarren) June 16, 2025 The bill could create dangerous loopholes — the kind that power corporations with the ability to unleash unregulated digital currencies outside the ambit of traditional banking regulations, she warned, by allowing it to become law without key amendments. Warren pointed out the risks of these digital currencies. If Congress fails to strengthen the GENIUS Act, she said that billionaires such as Elon Musk and Jeff Bezos could construct stablecoins that mirror one’s spending behaviors, abuse their data, and oust other businesses. She also cautioned that if such digital currencies fail, their creators may come to seek taxpayer-backed bailouts. Other lawmakers, apart from Warren, have been discussing the bill’s existing framework. Critics argue that it does not contain enough safeguards to prevent large technology companies and retail giants from creating private stablecoins that could function unofficially as digital money, raising concerns about surveillance and monopoly. The Guiding and Establishing National Innovation for US Stablecoins Act has undergone several congressional steps. The recent one was when the Senate passed a cloture motion with a vote of 68 in favor and 30 against last week. This will bring the bill to the floor for final debate before a vote on Tuesday, June 17. At the time, the bill also met pushback from Democratic senators who opposed its anti-money laundering standards, corporate-issuance provisions, and stablecoins issued by foreign companies. Most of those concerns were mitigated in subsequent versions of the bill. However, Warren and some others are still pushing for more protection . Warren’s statement raises different reactions in the crypto ecosystem A Senate aide noted that “the family is the hard part,” a quote that has prompted questions about President Donald Trump’s connections to World Liberty Financial. His overall participation in crypto businesses has raised questions of conflict of interest and the objectivity of his decisions as a regulator. The GENIUS Act has raised a larger public conversation about financial privacy and government reach. Some users on social media took issue with Senator Warren’s warnings, citing her one-time support of a central bank digital currency (CBDC) that they say could also facilitate data collection. Crypto lawyer John E. Deaton was among those who criticized Warren’s role in CBDC. “You backed a consumer CBDC issued by the Federal Reserve,” said Deaton. “So, it’s fine as long as the government does all the tracking and monitoring?” On the other hand, others made the case that corporate-backed stablecoins would be new competition for the banks. Fred Rispoli, a prominent voice in the crypto community, speculated that this law will end the control bank donors have over tracking one’s spending. Proponents of the bill say the GENIUS Act would provide legal aspects to stablecoins, increase consumer access, and establish transparent rules for the market. Still, critics argue that the risks outnumber the rewards without limits on corporate participation. Cryptopolitan Academy: Tired of market swings? Learn how DeFi can help you build steady passive income. Register Now
