Warren Warns: Is the GENIUS Act a Trojan Horse for Tech Billionaire Stablecoins?

Senator Elizabeth Warren is urging Congress to revise the pending GENIUS Act, warning that the current version of the bill could open the door for powerful tech billionaires like Elon Musk and Jeff Bezos to issue private stablecoins that pose serious risks to consumer privacy, market competition, and financial stability.

The bill, officially known as the Guiding and Establishing National Innovation for U.S. Stablecoins Act, recently received a major procedural vote in the senate granting it 68-30 support and is estimated to be voted upon finally on Tuesday. 

GENIUS Act Threatens Privacy and Competition

As much as new amendments treated the issues of anti-money laundering and the issuance of foreign stablecoins, Warren believes that there are significant gaps in protection in the bill.

The senator Warren  posted on X (formerly Twitter) that, if Congress doesn’t fix the GENIUS Act, billionaires could launch stablecoins that track your purchases, exploit your data, and squeeze out competitors. She also cautioned against the possibility that such privately-run enterprises might fail and require bailouts funded by the tax payers.

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

Amazon, Walmart Stablecoin Plans Raise Alarms

The complaints of Warren were increased after the news about the fact that retail giant Amazon and Walmart consider the development of their own digital money. According to her these measures emphasize the need to tighten regulatory control to avoid corporate wrangles in the increasingly dynamic financial arena.

The GENIUS Act has elicited a broad discussion on the Capitol Hill. The first was experienced when it drew opposition of some Democratic senators who worried that it was a loophole to corporate issuers, had lax anti-money laundering standards, and a lack of foreign stability coin controls. Although these concerns were ameliorated in the major amendments of the recent years, the critics such as Warren are still skeptical.

Trump-Linked Stablecoin Adds Political Tension

The matter is complicated by the fact that President Donald Trump is allegedly linked to the World Liberty Financial corporation that has just released its own stablecoin. Trump – family is the sensitive side of issue, claimed an aide to the Senate, referring to the political intrigues of Trump crypto affiliations.

The heated discussion in Congress has also been echoed in public. Crypto lawyer John Deaton challenged that position because Warren previously had supported the issuance of a government-issued central bank digital currency (CBDC). That would mean that it is okay when it is the government tracking you? Deaton published to the web, and pointed out perceived discrepancies.

Stablecoins Spark Debate on Financial Equality

Supporters of the bill believe that the controlled corporate stablecoins may be argued to provide far-reaching financial access facilities and eliminate banking monopolies. However, according to Warren and her supporters, unless the new law is more protective of consumers, it may become a turning point when the interests of corporate giants dominate the public in the realm of digital finance.

With the Senate ready to pass the final vote, the GENIUS Act has turned into the arena where the future of stablecoins is fought about as well as where the issues of data protection, regulatory balance, and priorities of billionaires in curating the American monetary future are debated.

Conclusion

The GENIUS Act is at an intersection of innovation and regulation as the Senate prepares a decisive vote. Its ultimate fate as a financial inclusion tool or as a corporate takeover mechanism will fall to the ultimate decisions of lawmakers, who have yet to listen to the warning of Warren and take action.

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FAQs

1. What is the GENIUS Act?

A Senate bill to regulate U.S. stablecoins, now under debate for potential loopholes.

2. Why is Warren against it?

She says it lets billionaires launch stablecoins that risk privacy and competition.

3. Were any changes made to the bill?

Yes, to address money laundering and foreign coin issues—but Warren wants stronger safeguards.

4. What’s the public reaction?

Mixed some see privacy risks, others support corporate coins for better financial access.

Glossary Of Key Terms

GENIUS Act
A U.S. bill to regulate stablecoins.

Stablecoin
A crypto token pegged to stable assets like the U.S. dollar.

CBDC
Government-issued digital currency backed by a central bank.

Cloture Vote
Senate vote to end debate and proceed.

Corporate Stablecoin
A stablecoin created by a private company.

World Liberty Financial
A Trump-linked company with its own stablecoin.

Reference

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