- Senator Elizabeth Warren says current crypto bills lack safeguards and could enable crime, terrorism, and economic instability.
- She warns that allowing companies to bypass SEC rules by moving to blockchain could damage the stock market.
Senator Elizabeth Warren is warning that crypto regulation must be tightened, saying weak laws could open the door to serious threats to the U.S. economy.
She raised concerns about legislative efforts in Congress, which, according to her, are too soft and shaped by industry players, rather than for the public interest.
Senator Warren on Crypto Regulation and the Economy
According to her recent interview with Bloomberg, Senator Warren explained why she believes some of the new crypto bills could have harmful consequences.
She pointed out that the Clarity Act and the Stablecoin bill, which are part of the crypto legislative package moving through the House, do not go far enough. These bills, she said, are written in a way that benefits crypto firms while overlooking public safety.
She warned that without proper oversight, crypto could be used by criminals and rogue actors. She linked the lack of clear rules to potential use by terrorists, drug traffickers, and even those looking to harm the economy. “Crypto regulation” was the word she leaned on to stress the urgent need for stronger legal frameworks.
Another key worry she raised was the idea that companies listed on the New York Stock Exchange could switch to the blockchain and opt out of SEC rules. Senator Warren warned that such a move would be disastrous.
According to her, this could shake the foundation of the stock market and remove key protections for investors. She said it would give large companies like Amazon or General Motors a path to escape regulatory checks just by moving onto blockchain.
Meanwhile, as highlighted in our previous news brief, the House passed a resolution on Wednesday in a close 217–212 vote. The move advances efforts to implement the GENIUS Act and the Clarity Act.
Fed Independence and Trump’s Role in Crypto Talks
It is worth noting that aside from crypto regulation, Senator Warren also spoke about growing concerns around the U.S. Federal Reserve.
She said she does not support Fed Chair Jerome Powell’s approach but believes it would be illegal and dangerous for Donald Trump to fire him. Previously, we covered that President Trump’s administration was planning to replace Federal Reserve Chair Jerome Powell. This move comes amid stalled cuts to interest rates in the country.
She added that firing Powell would damage global trust in the U.S. financial system. According to her, Trump’s repeated talk of removing Powell could spark panic in the bond market and raise doubts about the United States’ ability to maintain financial stability.
On the broader political stage, Senator Warren argued that Trump’s influence has extended to the appointment of officials. She emphasized that the nominees demonstrated loyalty to him rather than independence. That, she warned, could make future crypto decisions even more politically charged.
In her closing remarks, the senator made clear that without strict crypto regulation and independent financial oversight, both the economy and investor confidence could suffer.
Meanwhile, Senator Warren is not the only one speaking out on crypto regulation in the US. As previously noted, Democrats in Congress have introduced the COIN Act, a new bill aimed at addressing crypto holdings by public officials, including former President Donald Trump.
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