Senator Warren Urges Swift Implementation of GENIUS Act

According to BlockBeats, Senator Warren, the leading Democrat on the Senate Banking Committee, has written to Treasury Secretary Besant, urging the swift implementation of the GENIUS Act and addressing its regulatory gaps. Warren emphasized that the "U.S. Stablecoin Innovation GENIUS Act" provides a "light regulatory framework for crypto banks," and the Treasury must take action to implement and enforce this law to minimize significant risks to U.S. financial stability, consumers, taxpayers, and national security. The GENIUS Act, signed into law by U.S. President Donald Trump in July, mandates that stablecoins be fully backed by the dollar or similar liquid assets. It requires issuers with a market capitalization exceeding $50 billion to undergo annual audits and establishes guidelines for foreign issuance. Major U.S. institutions are currently working to implement this law. One of the primary concerns for Democrats is the issue of stablecoins, highlighted by Paxos's recent technical mishap that led to the accidental minting of $3 trillion in PYUSD stablecoins. Warren stated, "This incident demonstrates that operational failures can pose serious risks to issuers, market integrity, and even financial stability. The Treasury needs to explain to the public how it plans to address these risks, and if it cannot, it must specify what authorizations it requires from Congress."