Senator Elizabeth Warren has expressed new concern about the Genius Act, a bill that is designed to regulate Stablecoins in the US financial system, prior to the final vote that is planned for later today.
In a statement of 16 June on X, Warren claimed that the bill could allow billionaires to launch Stablecoins that follow the activities of the users and get an unfair lead on the market. She also warned that every fall -out of such initiatives needs rescue operations from taxpayers later.
According to her:
“The Genius Act has a large Maas in the law with which large technology companies and large retailers can issue their own private currencies that are structured as stablecoins. This account may not pass without changes that prevent these risks.”
Her comments follow on the recent speculation that large retailers such as Amazon and Walmart are investigating access to space. This has added the urgency to discussions about the scope and guaranteeing the Genius Act.
However, market observers have pointed out that the criticism and fears of Warren do not correspond to the provisions of the bill.
Currently, the Genius ACT is non-financial major technology companies of the direct publishing of Stablecoins. It also maintains strict legal requirements, including full reservebacking, monthly audits and extensive anti -money laundering practices (AML) compliance.
So if a company like Amazon wanted to offer a Stablecoin, it would probably have to set up a regulated financial entity or partner with an existing one.
MarktExperts also say that this process would have extensive supervision of federal authorities such as the FED and the FDIC.
The final mood of the Genius Act
This development is because the Genius Act is now on its way to a definitive mood and debate in the US Senate.
According to an update of the Senate’s mantle, the final vote of the bill is planned for June 17 at 4.30 pm If it is approved, the bill will continue to the House of Representatives.
However, the bill is still confronted with a considerable opposition of critics as former congress member Justin Amash, who called it a ‘back door effort to sabotage monetary innovation’. He warned that it could enable the US government to control and control emerging digital currencies.
Despite the opposition, industrial observers such as Nate Geraci, president of the ETF store, believe that the bill will probably pass. They notice strong dual support and growing the political momentum behind the emerging industry as essential factors that would stimulate the Stablecoin legislation.