Senator Elizabeth Warren Calls Out Stablecoin Bill GENIUS ACT, Here’s Why

Senator Elizabeth Warren is urging Congress to amend the GENIUS Act, warning that it may allow tech billionaires to issue private digital currencies. She expressed concern that these stablecoins could track consumer purchases, collect personal data, and push out smaller competitors.

Senator Elizabeth Warren Concerns Over Corporate-Issued Stablecoins

Senator Warren responded publicly after discussions emerged about major companies like Amazon and Walmart considering launching their own stablecoins. In a series of X posts, she warned that without proper amendments, the GENIUS Act would create a loophole for large corporations and wealthy individuals to introduce private currencies that could function outside of existing banking regulations.

“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,” Warren wrote on her official account. She also warned that if these digital currencies fail, their creators may request taxpayer-funded bailouts.

Lawmakers have been debating the bill’s current structure. Critics say it lacks strong protections to prevent Big Tech and retail giants from issuing private stablecoins that could behave like unofficial digital money, raising issues related to surveillance and monopoly.

GENIUS Act Heads for Senate Vote

The GENIUS Act, formally known as the Guiding and Establishing National Innovation for U.S. Stablecoins Act, has advanced through several legislative stages. Last week, the Senate approved a cloture motion with a 68-30 vote, allowing the bill to proceed to final debate and a floor vote scheduled for Tuesday.

Originally, the bill faced strong resistance from Democratic senators who raised concerns about anti-money laundering standards, corporate issuance provisions, and stablecoins created by foreign companies. Many of those objections were addressed through revisions to the bill. However, Warren and a few others continue to call for further safeguards.

A Senate aide noted, “The family is the difficult part,” in reference to U.S. President Donald Trump’s ties to World Liberty Financial, a company that recently introduced its own stablecoin. Trump’s growing connections to crypto ventures have also raised questions about regulatory fairness and influence.

Public Debate on Privacy and Government Control

The proposed bill has sparked public conversations about financial privacy and the role of government oversight. Several social media users responded to Warren’s comments by pointing out her prior support for a central bank digital currency (CBDC), which could also involve data collection.

“You supported a Federal Reserve-issued consumer CBDC,” wrote crypto lawyer John E. Deaton. “So as long as it’s the government that’s doing all the tracking and surveillance it’s okay?”

Other commentators argued that corporate-issued stablecoins could introduce healthy competition in the financial sector. “This bill will end the monopoly your bank donors have on tracking our purchases,” wrote Fred Rispoli, another vocal figure in the crypto space.

Supporters of the bill argue that the GENIUS Act would offer a legal framework for stablecoins, improve consumer access, and set clear rules for the market. Yet, critics say that without restrictions on corporate involvement, the risks outweigh the benefits.