Senator Elizabeth Warren is warning that the GENIUS Act, if passed without changes, could allow tech billionaires like Elon Musk and Jeff Bezos to launch private stablecoins that threaten consumer privacy and financial competition.
Warren raised the alarm after reports surfaced that Amazon and Walmart may explore launching their own digital currencies. She argues the bill formally called the “Guiding and Establishing National Innovation for U.S. Stablecoins Act” could open a loophole for large corporations to issue stablecoins without strong oversight.
“If Congress doesn’t fix the GENIUS Act, billionaires could launch stablecoins that track your purchases, exploit your data, and squeeze out competitors,” Warren posted on X. She also warned these ventures could later demand taxpayer-funded bailouts if they fail.
The GENIUS Act recently cleared a major hurdle in the Senate with a 68-30 cloture vote and now heads for a final vote on Tuesday. While lawmakers have already made changes to address concerns around money laundering and foreign-issued coins, Warren insists more consumer safeguards are needed.
The debate has also sparked public criticism. Crypto lawyer John Deaton pointed out Warren’s previous support for a government-backed CBDC, saying, “So if it’s the government tracking you, it’s okay?”
Meanwhile, some argue that corporate stablecoins could improve financial access and break banking monopolies.
With the Senate preparing to take the final vote, the GENIUS Act has transformed into a war between innovation, privacy, and corporate influence in the expanding digital money world.
Also Read: Walmart & Amazon Explore Crypto Payments via Stablecoins: WSJ
