Senator Elizabeth Warren criticizes the GENIUS stablecoin bill.

Elizabeth Warren, leader of the Democratic Party on the Senate Banking Committee, criticized the GENIUS stablecoin bill signed into law by President Donald Trump, calling it a “light regulatory framework for crypto banks” and urged the Treasury Department to fill the gaps to protect consumers and limit conflicts of interest related to Trump.

Warren emphasized that GENIUS does not have sufficient measures to ensure financial stability and manage operational risks, citing the Paxos incident of mistakenly minting 3,000 billion PYUSD tokens. She urged the Treasury to produce a specific plan to combat fraud, ensure transparency, and propose the necessary powers from Congress to address risks in the stablecoin market.

This is part of the effort of Democratic and Republican Senators to draft broader legislation to regulate the entire crypto industry, with upcoming meetings with crypto business leaders.