U.S. Senator Warren: The "GENIUS Act" may allow tech giants to issue stablecoins that circumvent banking regulations.

Gate News bot message, U.S. Senator Elizabeth Warren urged Congress to amend the GENIUS Act and warned that the bill could allow tech billionaires to issue private Digital Money. She is concerned that these stablecoins might track consumer purchasing behavior, collect personal data, and crowd out smaller competitors.

After discussions emerged about major companies like Amazon and Walmart considering launching their own stablecoins, Senator Warren publicly responded. In a series of X posts, she warned that without appropriate amendments, the GENIUS Act would create loopholes for large companies and the wealthy, allowing them to introduce private currencies that can operate outside of existing banking regulations.

Warren wrote on his official account: "If Congress does not amend the GENIUS Act, billionaires like Elon Musk and Jeff Bezos may launch stablecoins that track your purchasing behavior, exploit your data, and squeeze out competitors."

She also warned that if these Digital Money fail, their creators may ask taxpayers to fund a bailout.

Source: CoinGape