TLDR
- Senator Elizabeth Warren voiced new concerns about the GENIUS ACT ahead of the Senate’s final vote.
- She warned that the bill could allow billionaires to exploit stablecoins and compromise user privacy.
- Warren believes large companies might bypass restrictions by creating financial arms to issue stablecoins.
- The GENIUS ACT currently bars Big Tech from directly issuing stablecoins and enforces strict regulations.
- Market experts argue the bill includes strong safeguards like full reserve backing and federal oversight.
The GENIUS ACT faces renewed scrutiny as Senator Elizabeth Warren raises concerns ahead of its final Senate vote. The bill aims to regulate stablecoins but has drawn sharp criticism from lawmakers warning of possible risks. Despite opposition, strong bipartisan backing keeps the GENIUS ACT on track for likely Senate approval this afternoon.
Senator Warren Flags Loopholes in GENIUS ACT
Senator Elizabeth Warren has challenged the GENIUS ACT, arguing it leaves open pathways for corporate misuse of digital currencies. She highlighted the potential for billionaires and tech giants to exploit the law and avoid full oversight. Her concerns focus on privacy threats and taxpayer exposure through future market failures.
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
Although the GENIUS ACT blocks Big Tech from directly issuing stablecoins, Warren believes regulatory gaps still remain. She warns that companies could work around restrictions by forming separate financial entities. That tactic, she claims, would allow them to gain market dominance with little accountability.
Her remarks came after reports linked major retailers to stablecoin initiatives, adding urgency to the debate. Speculation surrounds firms like Amazon and Walmart possibly entering the sector through partnerships. These developments have prompted demands for tighter rules before the GENIUS ACT becomes law.
Legislative Safeguards Already in Place
Supporters of the GENIUS ACT argue that Warren’s fears do not match the bill’s existing legal framework. The legislation prevents non-financial companies from issuing stablecoins without strict financial regulation. It also enforces full reserve requirements and mandates monthly audits under federal oversight.
Moreover, companies must maintain anti-money laundering controls and register with federal financial agencies to operate legally. Any firm, including tech platforms, must comply or face penalties under the GENIUS ACT. These provisions aim to prevent misuse while encouraging safe innovation in the stablecoin market.
Industry experts say that entry into the stablecoin space will remain difficult for companies lacking proper financial credentials. They note that even partnerships would require full regulatory alignment under the GENIUS ACT. Federal bodies such as the FDIC and the Federal Reserve would supervise these processes directly.
Strong Senate Support Despite Rising Opposition
Despite vocal criticism from lawmakers like Warren and former Congressman Justin Amash, the GENIUS ACT continues to gain traction. Amash labeled the bill as a covert way for the government to exert control over digital money. However, most analysts dismiss that view, citing robust accountability measures in the bill.
Repeal the Bank Secrecy Act.
Repeal the Patriot Act.Say NO to the GENIUS Act.
It’s a backdoor effort to sabotage money innovation by establishing a regulatory regime whereby the U.S. government will ultimately monitor and control all potentially competitive digital currencies.
— Justin Amash (@justinamash) June 16, 2025
Analysts say bipartisan support signals the Senate’s readiness to advance the GENIUS ACT to the House for further debate. According to the Senate cloakroom, the final vote is scheduled today at 4:30 P.M. If approved, it would mark a major milestone in US stablecoin regulation.
Nate Geraci and others in the finance sector predict the GENIUS ACT will pass, given the political momentum. Supporters argue the bill provides needed structure to an emerging financial field without stifling innovation. The GENIUS ACT could reshape how stablecoins operate within the broader US financial system.
