Highlights:
- Elizabeth Warren warns crypto regulation could put the U.S. economy at risk.
- She calls for a ban on lawmakers trading cryptocurrencies.
- Warren urges strict safeguards against illicit finance and corruption.
Senator Elizabeth Warren has once again urged the tightening of regulations on cryptocurrency. According to her, a weak rule may permit corruption and involve systemic financial risks. She made the remarks in an interview with MSNBC, in which she referred to the current framework as an industry giveaway.
Warren cautioned that crypto regulations drafted by industry stakeholders do not safeguard consumers or the U.S. economy. She believes laws should enhance the welfare of the people and not of corporations. Warren also called for the prohibition of the trading of digital assets by lawmakers to prevent conflicts of interest.
We need strong crypto regulation – not an industry giveaway that puts our economy at risk and supercharges President Trump’s corruption. pic.twitter.com/6sVbwMiSFf
— Elizabeth Warren (@SenWarren) August 10, 2025
Push for Guardrails and Market Structure Legislation
Warren pointed to the necessity of guardrails to avoid the possibility of cryptocurrency destabilizing the financial system. She contended that the existing censure is not very effective in curbing illegal operations. These involve their utilization by terrorists, drug traffickers, and other criminal networks. She recently compared that to misguided policies prior to the financial crisis of 2008.
The senator of Massachusetts also urged broader market structure legislation. She pointed out that current bills, such as the GENIUS Act, do not substantially cover oversight. Although she voted against the measure, she did not condemn its main provisions in her latest remarks. Rather, she has concentrated on what needs to be added to its effect.
Warren also cited the CLARITY Act as yet another bill being influenced due to lobbying by heavy industry. She said the laws require having clauses to avoid the undue influence of the crypto companies. This, she said, would create a level playing field of regulation that safeguarded investors and the economy at large.
Trump’s Ties to the Crypto Sector Under Scrutiny
She also targeted her warnings to the relations former President Donald Trump had with the crypto industry. Latest disclosures revealed that Trump has made more than $57 million through World Liberty Financial, which is behind the USD1 token. These ties raise the criticism of whether his administration made decisions that were beneficial to the sector.
Warren argued that new crypto legislation has the potential to “supercharge” Trump’s corruption. She mentioned an example of the move to include cryptocurrency in 401(k) plans. According to analysts, the move may subject retirees to volatile assets in their retirement funds. The reactions of industry figures on the issue of Warren were mixed. Former SEC adviser Judy Slaughter, now at Paradigm, applauded her recognition of the need to regulate crypto. According to him, she has changed her campaign to developing more effective regulations instead of rejecting legislation.
Noting that it’s good to see Sen. Warren embrace the idea of crypto legislation as necessary, the part of this clip I find most noteworthy is that she doesn’t critique the now enacted GENIUS law, but instead focuses on what she wants to see in market structure legislation. https://t.co/IMML72iLV9
— Justin Slaughter (@JBSDC) August 11, 2025
The stance of Warren reveals that she has been highly critical of the sector. Her most recent strategy, however, is an indicator of readiness to have debates on the issue of overall control. Elizabeth Warren’s warning about crypto regulation should be written for the public interest, not by industry insiders seeking profit.
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