Elizabeth Warren severely criticizes the act of genius

The law on engineering, this regulatory framework intended to give a new life to Stablecoins, is welcomed as a strategic victory by the Republicans and Donald Trump. For them, it combines innovation, digital sovereignty and the power of the dollar. A cryptographic victory, in their eyes. But can we trust? A dissident and sharp voice stands out: that of Elizabeth Warren. The alert democratic senator, denounces and never advances without ammunition. Behind her criticism, she is a system she accuses.

The return of a already seen scenario, cryptographic version

Elizabeth Warren acts a spectrum: that of a repeated financial disaster. By mentioning Mercrodity Futures Modernization Act of 2000She revives the memory of A lax regulation which paved the way to 2008 crisis. In his opinion, The act of engineering follows an identical modelThis time in the crypto universe.

We have already seen this film when the industry writes its own laws.

In 2000, she recalls, the derivative industry submitted a weak text to the congress which gave the illusion of regulation. Result: a bubble that bursts eight years later. Today, the cryptography sector plays the same role by offering a tailor -made legal framework.

In 2000, the derivative industry presented a bill to the legislators who have lowly regulated the sector while offering the illusion of government support.

For Warren, the Stability promised by the Engineering Law could hide Dangerous permissiveness. Stablecoins, supported by the dollar but issued by private companies, could well become the new sub-times.

An economy shaped to enrich the powerful

Elizabeth Warren not only criticizes a law: she reveals a system. She accuses Trump of instrumentalize cryptographic regulations for its personal profitcontrolling both money and its referees. “”Trump uses the presidency to get rich through cryptos, and he does it at the sight of everyone“, She insists.

She denounces A presidency where private interest prevails over the common good. The dissolution of the cryptographic unity of the Ministry of Justice, the pressure on the dry and the appointment of the allies of the form of the industry, according to her, a dangerous cocktail.

Donald Trump is the first president of American history to adopt a law placing him at the head of regulators responsible for determining the value of a large part of his own fortune.

The American economy, in this configuration, becomes an enrichment tool without guarantees. Warren clearly says it: this law does not protect citizens; He institutionalizes a conflict of interest.

Behind the regulations: a new power without control

Beyond promises of stability, The act of engineering opens the door to a new form of financewhere the stablecoins become almost good. Sergi Basco, professor of economics, warns: “It is not certain that private stable transmitters are regulated enough to avoid potential banking parts“.

THE Panic around Silicon Valley Bank in 2023 is a sad reminder. Again, the active ingredients deemed safe were not enough to avoid the client’s race. Confidence, the key to any economy, flickering faster than people think so.

Warren adds that these stablecoins could mislead: “The public might believe that the government supports these currencies“.

Key points to remember:

• 98% of stablecoins are supported by the dollar, but the majority of transactions take place outside the United States;
• Stablecoins give the illusion of state stability while escaping traditional banking rules;
• Trump launched his own cryptos while imposing a law favorable to their expansion;
• The illusion of security could trigger a global crisis if confidence disappears.

Warren calls for vigilance: what is presented as innovation could become a lever for very real instability.

The act of genius embodies an ambition: relaunch the digital dollar and put in the United States a competitive advantage. But behind this goal is a complex, unstable and potentially dangerous architecture. According to Amundi, this project could even weaken the global financial system if the flows move massively to private stablecoins. By trying to save the dollar, the United States may destabilize the economy itself that it has still dominated.

Mikaia A.

The Blockchain and Crypto revolution is underway! And the day when the impacts will be felt on the most vulnerable economy of this world, countertopury, I would say that I was there for YL

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