US Senator Elizabeth Warren Compares GENIUS Act to 2008 Financial Crisis, Warns of Crypto Industry Influence

Senator Elizabeth Warren has sharply criticized the GENIUS Act, a new crypto law associated with former US President Donald Trump, drawing parallels to the regulatory failures that precipitated the 2008 financial crisis. According to Vanity Fair, Warren alleges the legislation was heavily influenced by crypto insiders, prioritizing industry profits over public safeguards.

The bill's ties to Trump-linked entities—including memecoins like OFFICIAL TRUMP and a USD1 stablecoin—have raised conflict-of-interest concerns. Forbes estimates Trump's crypto holdings at $1 billion, surpassing his other ventures. Warren also highlighted the dissolution of the DOJ's crypto enforcement unit as a move that empowered industry players to shape favorable regulations.

Warren likened the GENIUS Act to the 2000 Commodity Futures Modernization Act, which deregulated derivatives and contributed to the 2008 collapse. She warned that concentrated industry influence risks repeating history, leaving consumers vulnerable and regulators sidelined.