Sen. Warren slams stablecoin law and urges Treasury to address Trump conflict of interest concerns and financial risks
Senator Warren criticized the GENIUS stablecoin law and urged Treasury to mitigate risks, including Trump-linked conflicts and financial instability.Summary
Senator Elizabeth Warren, the top Democrat on the Senate Banking Committee, strongly criticized the Guiding and Establishing Innovation for U.S. Stablecoins Act (GENIUS), which was signed into law by President Trump, calling it a "light-touch regulatory framework for crypto banks." In a letter to Treasury Secretary Scott Bessent, Warren stressed the critical need for Treasury to implement and enforce the law in a way that limits severe risks to U.S. financial stability, consumers, taxpayers, and national security. A major concern highlighted is the potential conflict of interest stemming from President Trump's family involvement in the stablecoin industry via World Liberty Financial USD. Warren demanded that Treasury propose specific steps to address corruption, insulate rules from conflicts of interest, and advocate for legislative solutions during ongoing broader crypto market structure negotiations. Furthermore, she pointed to operational risks, citing Paxos' recent accidental minting of $3 trillion in PYUSD tokens, arguing that GENIUS lacks safeguards against systemic collapse and requires Treasury to explain how it will address such risks or seek necessary Congressional authority.
(Source：The Block)