Senator Elizabeth Warren (D-Mass.) is urging her fellow lawmakers to support the revised Stablecoin legislation, expressing concerns that critical issues regarding President Trump’s ties to the cryptocurrency market remain unaddressed, which she believes could leave both financial markets and consumers at risk.
The Genius Act, intended to establish a regulatory framework for financial stability, is set to return to the Senate floor on Monday. This comes after an agreement was reached between Republicans and Democrats who support cryptocurrency.
“Here we are,” Warren plans to state during Monday’s session, based on prepared remarks. “So what’s changed with the bill? Not much. That fundamental issue is still unresolved.”
Earlier this month, Democrats halted progress on the Senate’s consideration of the Genius Act due to disagreements with Republicans.
A coalition of pro-crypto Democrats rallied support for the measure, alleging that Republicans had prematurely ended negotiations after Senate leadership attempted to push for a vote.
Following two weeks of discussions, it seems both parties have found common ground again.
The group advocating for the bill shared memos last week touting “significant victories,” including enhanced measures against money laundering, improved national security, and consumer protection initiatives, along with new limitations on large tech firms in the stablecoin arena.
However, Warren criticized the revised legislation, insisting that Trump’s connections to the cryptocurrency sector cannot be properly managed.
“The Genius Act enables Trump’s corruption by exceeding the scale of the stubcoin market and the profitability associated with it,” she remarked on Monday, referencing the stablecoin linked to World Liberty Financial, Trump, and his son’s Crypto Venture.
This stablecoin was recently involved in a $2 billion deal between Emirati company MGX and Crypto Exchange Binance.
“For the first time in U.S. history, it will effectively make Donald Trump his own regulator for financial products,” Warren continued. “Congress should act as a check on the president, not facilitate further opportunities for him to profit from dubious cryptocurrency transactions.”
The Massachusetts Senator also pointed out that Trump is set to dine with major investors in his memecoin later this week.
On a related note, Warren aims to highlight the potential consequences of the Genius Act on financial markets, drawing parallels between prior attempts to regulate the crypto industry and Congress’s past efforts to manage derivatives, which contributed significantly to the 2008 financial crisis.
“This isn’t Congress’s first time listening to the financial sector and establishing a weak regulatory framework for innovative financial products. We’ve seen this narrative before and know it ends poorly,” she stated.
“Without a doubt,” Warren added, “we might be on the verge of another financial crisis in the coming years, and it’s almost certain that we’ll witness extreme volatility in the cryptocurrency market’s value. If Congress approves this bill, it will be the American people who face the fallout from significant financial downturns caused by the stablecoin market.”
She also raised alarm about potential risks to consumers, as well as concerns about terrorist financing and the capacity of Big Tech to introduce Stubrecoin despite the new rules advocated by her colleagues.
“There’s no valid reason to proceed with this,” she asserted. “A bill that significantly enhances oversight of the stablecoin market deserves to be passed. However, a bill that boosts the stubcoin market while fostering presidential corruption and jeopardizing national security, financial stability, and consumer protection simply does not make sense.”
