Elizabeth Warren Calls for Overhaul of GENIUS Act to Block Corporate Influence over Stablecoins

The proposed legislation known as the GENIUS Act requires reevaluation to prevent corporations from «issuing their own currencies,» stated U.S. Senator Elizabeth Warren, a member of the Senate Banking Committee, in a comment to CoinDesk.

«The Senate must amend the GENIUS Act to prohibit major tech firms and other commercial giants from owning or having ties to stablecoin companies,» she emphasized.

The bill failed to pass a critical procedural vote in the Senate on May 8 due to concerns from several Democratic senators regarding anti-money laundering requirements and national security issues.

The situation was further complicated by a potential conflict of interest involving U.S. President Donald Trump’s family and associates, arising from initiatives linked to digital assets.

The legislation is set to undergo revisions and further discussions. Some officials speculate that a re-vote could occur as early as next week.

«No senator should support making it easier for large technology companies to interfere in our financial transactions or to push out small businesses and political opponents from the payment system,» the senator added.

Warren’s statement comes amid reports of Meta’s interest in integrating stablecoin payments across its platforms, along with various other initiatives among major companies in the U.S. and globally.

For context, in May, the market capitalization of the USD1 stablecoin, affiliated with Trump’s World Liberty Financial, surpassed $2 billion.