🏛️ What the GENIUS Act Proposes
Establishes a federal framework for stablecoins in the U.S.
Aims to promote innovation and position America as a leader in digital assets .
Warren’s Key Objections
🔁 1. Potential for Presidential Self‑Dealing
Warren warns the bill could enable Donald Trump—whose family-affiliated World Liberty Financial already launched the stablecoin “USD1”—to potentially regulate his own financial product, opening doors for abuse:
> “The GENIUS Act will accelerate Trump’s corruption by supercharging the size of the stablecoin market and the reach and profitability of Trump’s USD1.”
Sen. Jeff Merkley echoed this concern with his End Crypto Corruption Act to bar officials from issuing digital assets .
⚠️ 2. Insufficient Consumer & Systemic Safeguards
Warren describes the bill as riddled with loopholes, raising alarms over financial stability, weak oversight, and reduced consumer protections .
She warns it could set the stage for the next financial meltdown, comparing it to the 2008 crisis .
🕵️♂️ 3. Security & Illicit Finance Risks
The GENIUS Act may unintentionally aid terrorists, cartels, and money launderers by expanding stablecoin use without strong AML/KYC requirements .
Tether and similar issuers could gain easier access to U.S. markets under current provisions .
🏦 4. Threat to Community Banking & Data Privacy
Big Tech and tech billionaires (e.g. Musk, Zuckerberg) might issue private currencies, potentially draining deposits from local banks and enabling data harvesting .
🧩 Current Status & Battle Lines
The bill advanced via cloture (68–30) in the Senate earlier this month .
Warren and at least nine Democratic senators have withdrawn support, pressing for amendments on anti-corruption, AML, and financial stability .
A key vote is looming, but the outcome remains uncertain without reforms
