Senator Elizabeth Warren intensified warnings against proposed cryptocurrency legislation, asserting that the GENIUS Act and CLARITY Act lack safeguards against illicit activities and could "destroy" the U.S. economy. In a Bloomberg interview, she emphasized that both bills—advanced by a 217-212 House vote—enable criminal exploitation by terrorists, drug traffickers, and corrupt actors due to inadequate anti-money laundering rules and consumer protections.
Warren specifically targeted former President Donald Trump's crypto ventures, labeling his USD1 stablecoin and TRUMP memecoin a "superhighway of crypto corruption". She cited Trump's $57 million earnings from USD1 issuer World Liberty Financial and $320 million in fees from the TRUMP token, per Chainalysis data. Additionally, she warned that the CLARITY Act's provision allowing companies like Amazon or Meta to "digitize themselves" on blockchain could let them evade SEC oversight, destabilizing stock markets.
Former Binance CEO Changpeng Zhao (CZ) countered Warren's stance, arguing that "NYSE ≠ economy" since the exchange's $100 billion valuation pales against Amazon's $2.4 trillion market cap. He asserted, "All companies = economy," defending crypto's broader economic role. Despite Warren urging delays until stricter regulations are added, Trump's intervention secured GOP support to advance the bills.