Seni Elizabeth Warren criticized the bipartisan Genius Act and said that the interests of the crypto industry made the law heavy. The situation reminds him of the 2000 Commodity Futures Modernization Act, which was the precursor to the 2008 financial crisis. Can the Genius Act be disastrous as CFMA?
Summary
- Critics of Sen Warren and other Genius ACT claim that the new law serves the President and Vice President, which is now allowed to establish its own stabelin
- Other inauguration of the Warren and the Genius Act points to the similergits between the law and the 2000 Commodity Futures Modernization Act, which created a large scale of derivatives due to the 2008 financial crisis.
- The Genius Act critics have warned that in future all the big companies would have led branded stabelcoins to lead confusion and anarchy.
What did Warren really say?
A ranking member of the Senate Banking Committee, Senator Warren underlined his criticism of the Genius Act, recently argued the law in an interview with the Vanity Fair released on July 24, 2025.
Warren has many issues with new adopted laws and the overall position of crypto regulation in the US:
- First, he is solid with unlimited opportunities of Trump for self-promotion, which he uses, not away from taking advantage of his prescription.
- Secondly, Warren emphasizes that the law was greatly influenced by industry actors who coined the bill in such a way that keeps their interests well changing the rest of the American.
- Third, Warren sees that the Act Simula has inherited to those who paved the way for the 2008 financial crisis. Warren is in favor of an industry, but does not protect citizens, it condemns.
Addressing the launch of Memcoins and Stabecrims by companies affiliated to Trump family, Warren claimed that Trump is “using the presidential post.”
Crypto Ventures associated with Trump Family In Memcoins’ official Trump and Memcoins, Multi-Pired Crypto Company World Liberty Finance, a stabechoin issued by this supplement, a stabecon USD1, mining company American bitcoin, and Bitcoin Treasury Trump Media and Technology Group Launched Bitkoin Treasury. The platform is true social.
A large part of the interview was dedicated to Trump’s influences to his critics in American media – a theme that rarely looks at Crypto X, despite the alleged dedication to the community’s censorship resistance.
For the involvement of internal sources in the crypto industry in policy-making, Warren noted that the Cryptocurrency Enforcement Unit of the Department of Justice was dissolved, thus reducing the independent supervision of the President’s actions. Warren said:
“Donald Trump is the first President in American history to sign himself in the law in charge of regulators who will reduce the value of a large portion of Donald Trump of Trump of money.”
Talking about the Genius Act material, Warren said that America already had a case when “industry has written its law.” Example Warren 2000 is talking about the 2000 Commodity Futures Modernization Act, handed over to Washington by the derivatives industry, which is to make it a law, which is dead.
“The result was the 2008 accident in which 10 million American families had their homes and their jobs and their savings cost. Pay the price.”
While the comparison made by Warren belongs to, as CFMA contributed significantly to the 2008 financial crisis and great recession, it
Why do Warren and others compare the Genius Act and Commodity Futures Act?
It is not easy to compare these two acts, as they deal with two different markets and have a different nature in their flaws. It will take time to see if the doctor responsible for the Genius Act is real.
CFMA, signed by the then-President Bill Clinton in December 2000, was aimed at overseeing OTC derivative trading. However, the bill became very loose. This ended the market in a bad way, opening the door for anarchy that eventually caused the great recession.
The Genius Act, however, addresses the RISCS through the requirements of stabechoin and regular audit of high -amount collateral issues. The standard is so high that the largest USD-Paigd Stabelcoin issue, Tether, had to invest its reserves in orders to set fire to new regulation. At the top of risk management, the demand for USD-paid stabecoin worldwide can increase economic health
Then, warnings and other Genius Act critics compared Stabelcoin Regulation with an chaos created by uncontrolled release and trading of complex derivatives? They believe that the friendly regulator climate will lead to the release of various stabechoin – each is associated with the imaginary loss of the value of these stabechoin.
This future image of the future is not impossible; Many technical companies are already working on branded stabelines. As a professor of economics, Barry Echhengreen said in his essay, “The Genius Act will be for us for economic anarchy,” they do not get the future bill of money, but rather America was designed for the free banking age within the scope of the 19th century East-World War, when the banks were issuing their currencies, which was causing confusion.
He wrote:
“(Genius Act) will give a petina of government authority and validity to Crypto.
The Genius Act protects the owners of Stabecrims by giving priority in the underlying assets, which is in cases of trouble with Stabecoin issuer. The problem is that in the event of a huge stabechoin issue accident, it will have to sell the US Treasury Bills quickly to pay Crypto Golds. Such a spade-up sleeve can reduce the value of the US economy and the dollar that others are seen as a profit from stabelin’s global expansion.
Another similariti explains another Genius Act by critic, Mark Hess, who is working as the director of Crypto and Fintech in the Linianal Reform, poor Rick Management. For Hays, the Genius Act offers half-incomplete measures, while not having various dangers, as it was in CFMA.
Where a bill (CFMA) made its efforts in the trading effort of refined derivative assets to banks, the Genius Act lacks sanctions for top officials. Interestingly, it prevents Congress members and senior officials from issuing stabelcoins during its terms, but this block does not prevent presidents and vice -presidents from issuing stabelcoins, as morality laws apply to them.
Mexc Research, Chief Analyst at Sean Young, comment on crypto.news:
“Senator Warne managed to increase an important historical parallel, but comparison between the Genius Act and Commodity Futures Modernization Act (CFMA)
With CFMA credits such as over-the-counter derivatives such as credits defood swaps, they prefer significant contributors for systemic risk in the financial crisis of 2008. The Genius Act, by contrast, attempts to opocyte for the crypto markets by providing clear regulatory routes and around the classification of digital assets, by reducing vaccination.
He said, the underlying concept of Senator Warren is still value. Crowds or industry-powered laws can actually build long-term weaknesses without proper inspection. This is also true about the Genius Act, as it is absent for railings for anti -corruption segments. Except those provisions, it leads to lack of transparency and invites doubts about
In all, the effective crypto law should be attempted a balance: protecting investors that enable and maintain market integrity. The Genius Act progresses on the development front, but we are behind Warren how it is low on investor protection. This needs to add an interval to legalists if they want to create public truth in the regulatory process. ,
While Warren and some other partner Damocrates Crypto are condensed as much more Rissey and are associated with crime, many huge investigations that mothers (eg, FTX collapse) who are under the Biden’s tenure and SEC’s rigorous supervision, under the leadership of Cripto Scapto Gary Gensler. This indicates that rises exist, no matter how hard or loose the approach of the legislators is. The balance mentioned by Sean Young is the same as important, and we just want to see whether the Talent Act attains it.
