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I just saw that Senator Elizabeth Warren is once again in the crosshairs of crypto regulation debates. This time, she is putting strong pressure on the Federal Reserve and the Treasury to not spend a single cent of taxpayers' money rescuing billionaires in the sector.
What’s interesting is how Warren points out something many don’t want to hear: while insiders and crypto magnates protect themselves during market crises, retail traders and retirees end up bearing the losses. And here’s the point that causes the most noise, especially considering that the Warren family and other political families have their own interests at stake, with the Trump family also involved in crypto.
Warren is asking the Treasury to implement much stricter rules under the GENIUS Act and to issue clear guidelines. Basically, she wants an explicit ban on using federal resources like the Exchange Stabilization Fund or the Federal Reserve’s emergency lending tools to back stablecoins or anything else in the crypto sector.
It’s an interesting political move because it touches a sensitive nerve: the idea that the government uses public money to save billionaires while ordinary people suffer. We’ll see if this pressure actually leads to changes or if it’s just another round in the regulatory battle we’ve been witnessing in crypto for years.