Senator Warren criticizes the stablecoin bill GENIUS and urges the Treasury to address regulatory gaps

ChainCatcher news, according to The Block, Senator Elizabeth Warren wrote to Treasury Secretary Scott Bessent, stating that the GENIUS stablecoin bill is "lightly regulated," and called for the development of implementation guidelines to address financial stability, consumer protection, and national security risks.

The bill requires stablecoins to have 100% reserves in US dollars or equivalent highly liquid assets, annual audits for issuers with a market capitalization exceeding $50 billion, and guidelines for foreign issuers. Warren specifically pointed out potential conflicts of interest related to World Liberty Financial USD, associated with Trump, and mentioned the incident where Paxos mistakenly minted $30 trillion PYUSD due to technical issues. She urged the Treasury to propose measures against money laundering and operational risks, and to fill regulatory gaps in broader cryptocurrency legislation.