U.S. Senator Elizabeth Warren addressed the Senate floor to discuss necessary amendments to the GENIUS Act, aiming for Democratic support of the stablecoin regulatory framework. The act seeks to integrate stablecoins further into the U.S. financial system, but Warren emphasized that without significant changes, it could facilitate corruption.
Warren criticized President Donald Trump and his family's involvement in stablecoin ventures, highlighting concerns about potential conflicts of interest and self-enrichment. She stated, "If the GENIUS Act goes forward without changes, Donald Trump will continue to line his pockets with his crypto scams - while his policies continue to tank the economy for the rest of us."
The senator outlined five areas requiring revision for Democratic backing. During a March committee review, Democrats proposed nearly 70 amendments but faced unanimous Republican opposition. The current version of the bill includes only minor modifications.
Warren highlighted Trump's reversal on cryptocurrency after receiving substantial industry donations during his 2024 campaign and inauguration. She alleged that Trump's administration has been marked by efforts to profit from crypto ventures, citing World Liberty Financial's launch of USD1 as an example.
She raised alarms over potential abuses under the GENIUS Act: "If the majority wants to establish a durable legal framework for digital assets... they will take these concerns seriously and agree to improve the bill."
Warren urged prohibiting elected officials from engaging in stablecoin businesses and stressed safeguarding national security against illicit use of stablecoins. Additionally, she called for consumer protections akin to those for traditional financial transactions.
The senator warned against risks posed by allowing non-financial companies like Elon Musk's X Money platform into currency issuance under this legislation.
In conclusion, Warren argued that while issues with the GENIUS Act are significant, solutions exist: "We can find common ground on a reasonable framework... But we cannot bless Trump’s corruption and put consumers, our financial system, and national security at risk."