Senator Elizabeth Warren has expressed additional worries about the GENIUS Act, a law intended to regulate stablecoins in the United States, ahead of its final Senate vote on June 17. Warren said that the plan may allow billionaires and huge businesses, such as Amazon or Walmart, to issue stablecoins that track user activities, potentially requiring taxpayer bailouts.
She proposed measures to remove what she perceives as loopholes that allow Big Tech to develop private currencies.
However, market analysts and bill backers contend that Warren's objections are unjustified. The GENIUS Act prohibits non-financial Big Tech corporations from directly producing stablecoins and mandates full reserve backing, monthly audits, and strong anti-money laundering compliance. If a firm like Amazon wants to issue a stablecoin, it would have to either become a registered financial entity or form a partnership with one that is subject to federal oversight.
Despite some criticism, the GENIUS Act has substantial bipartisan support and is expected to pass, creating a clear legal framework for stablecoins in the United States. If adopted, the bill will be referred to the House of Representatives for additional consideration.
