Warren says GENIUS Act could let tech giants launch spy coins if lawmakers fail to add strict consumer safeguards.
The Massachusetts Senator argued that the bill, now advancing in the Senate, hands wealthy corporations tools to issue private stablecoins that track spending, harvest data, and crowd out smaller rivals. She framed the stakes as a test of whether Washington will protect privacy or enable corporate control of digital money.
Senator warns of data surveillance risks
Warren posted on X and urged colleagues not to let the measure become a bludgeon that allows tech billionaires to put profits before user safety. She warned that investors like Elon Musk or Jeff Bezos could design branded dollars that mirror every purchase and displace community banks and fintechs. The Senator said that if such products collapsed, their creators might seek taxpayer bailouts, and she vowed to oppose any rescue of unregulated digital issuers.
Bill approaches final Senate showdown
The Guiding and Establishing National Innovation for US Stablecoins Act cleared a cloture hurdle last week by a vote of 68 to 30, moving to floor debate scheduled for Tuesday June 17. Earlier drafts drew fire from Democrats over anti-money laundering gaps and allowances for foreign issuers, but negotiators revised those sections to secure extra support. Warren maintains that the current text still leaves loopholes big enough for corporate stablecoins to skirt banking oversight and consumer protection rules. She is pushing amendments that would limit coin issuance to insured depositories and require real‑time audit trails.
Crypto community splits over privacy and competition
Reaction across the crypto sector was swift, with some users accusing Warren of hypocrisy for previously promoting a Federal Reserve central bank digital currency. Attorney John E. Deaton argued that government tracking would be no better than corporate tracking and questioned her stance. Others such as analyst Fred Rispoli welcomed the bill as a chance to break what he sees as bank dominance over consumer spending data.
Supporters contend the GENIUS Act will set clear rules for stablecoins, improve access to digital payments, and drive innovation within regulated boundaries. Skeptics insist that without tighter limits corporate issuers will replicate the walled garden models that gave social media behemoths outsized influence over public discourse, only this time over personal finances as well. Congressional leaders promised an open amendment process this week.