Senator Warren urged the swift implementation of the GENIUS Act and focused on regulatory loopholes in stablecoins.

Elizabeth Warren, the top Democrat on the Senate Banking Committee, wrote to Treasury Secretary Benson, urging expedited implementation of the GENIUS Act and addressing regulatory gaps within it. In the letter, Warren stated that the GENIUS Act for U.S. Stablecoin Innovation is a "light-touch regulatory framework for crypto banks," and that the Treasury must take steps to implement and enforce it to minimize the serious risks to U.S. financial stability, consumers, taxpayers, and national security. The GENIUS Act, signed into law by President Trump in July, requires stablecoins to be fully backed by U.S. dollars or similar liquid assets, mandates annual audits for issuers with a market capitalization of over $50 billion, and establishes guidelines for foreign issuance. Major U.S. institutions are currently working to implement the law. One of the Democrats' main concerns is stablecoins. Paxos recently accidentally minted $3 trillion of its PYUSD stablecoin due to a technical issue. Warren stated, "This incident demonstrates the serious risks that operational failures can pose to issuers, market integrity, and ultimately financial stability. The Treasury needs to explain to the public how it intends to address these risks and, if it cannot, what Congressional authorities it needs."