U.S. Senator Elizabeth Warren launched a fierce criticism of the current stablecoin bill under congressional review, accusing former President Trump of using the bill to pursue personal economic interests. Warren posted on social media, stating that Trump is using his decentralized financial project "World Liberty Financial" to launch a stablecoin USD1, issued on Ethereum and BNB Chain, further questioning whether the bill would allow Trump and other wealthy individuals like Elon Musk to easily control people's assets.
Warren strongly criticized the bill, writing:
Congress should stand up and amend the stablecoin bill currently under Senate review, which would make it easier for Trump and Musk to control your money.
She questioned the bill, known as the "Financial Innovation and Technology for the 21st Century Act" (FIT21), and strongly opposed the potential benefits it could bring to the wealthy.
Stablecoin Bill May Impact Traditional Banking Ecosystem
Warren pointed out that the possibility of stablecoin issuers offering yield products poses a threat to traditional banking. According to her view, the annual yield products of stablecoins will attract massive capital inflows, which will not only affect the operation of traditional banks but also shake the existing financial ecosystem, further exacerbating the instability of the digital asset market.
The stablecoin market currently exceeds $238 billion, with Tether (USDT) being one of the main stablecoins. Warren is concerned that if these large enterprises further control the issuance and market of stablecoins, they will be able to use digital assets for personal gain.
Trump and Sacks Face Accusations
Additionally, Warren challenged Trump's digital asset affairs director, the "Crypto Czar" David Sacks, demanding he prove that he did not benefit from digital asset policies promoted during the Trump administration. Sacks previously stated that he had sold all crypto assets before becoming the digital asset affairs director, but Warren questioned this claim and demanded evidence. Sacks had previously stated:
The Trump administration will promote legislation to improve the stablecoin market and related regulatory structures. He also promised to propose legislation on stablecoins and market structures within the next 100 days.
Musk's Influence
Warren also expressed concerns about Musk's influence in the U.S. government. The Department of Government Efficiency (DOGE), led by Musk, aims to simplify government structures and reduce unnecessary regulations. However, Warren is worried that such a department would give Musk and his business interests too much influence, further increasing the risk of corruption.
Warren had previously published an open letter in January criticizing DOGE, stating that the department could become a breeding ground for corruption. She also proposed some reform suggestions, including combating tax loopholes for the wealthy and improving government contracts to reduce wasteful spending.
