Senator Elizabeth Warren Warns Stablecoins Could ‘Blow Up Our Entire Financial System’
Senator Elizabeth Warren is worried a bipartisan stablecoin bill working its way through Congress doesn’t do enough to address the systemic risks she thinks the dollar-pegged assets pose. Senator Bill Hagerty (R-TN) introduced the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act in February. The legislation, which aims to establish regulatory clarity for stablecoins, passed out of the Senate Banking Committee on March 13th by a bipartisan 18-6 vote. In a speech to the committee earlier this month, Warren (D-Massachusetts) said the bill doesn’t protect consumers, national security or financial stability. “The bill lacks basic safeguards necessary to ensure that stablecoins don’t blow up our entire financial system. Under this bill, stablecoin issuers can invest in risky assets, including the very assets that were bailed out in 2008 and again in 2020. And anyone who thinks the US taxpayer won’t be called on, directly or...