Warren Demands Swift GENIUS Act Implementation to Safeguard PYUSD Stablecoins as Treasury Addresses Operational Risks After Paxos Incident

COINOTAG News reports that Senator Elizabeth Warren, Ranking Member of the Senate Banking Committee, has urged Treasury Secretary Yellen to accelerate GENIUS Act implementation. Warren frames GENIUS Act as a light-touch regulatory framework for crypto banks and stresses timely enforcement to protect financial stability, consumers, taxpayers, and national security. The GENIUS Act requires stablecoins to be fully backed by the U.S. dollar or liquid assets and mandates annual audits for issuers with a market cap above $500 billion, with guidance for foreign issuers. Agencies are coordinating to implement the framework.

Warren cited a reported operational lapse at a major stablecoin issuer involving PYUSD to illustrate resilience risks and market integrity concerns. She urged the Treasury Department to outline its risk-management plan and, if current authorities fall short, to specify what authorizations would require Congress action. The remarks highlight ongoing regulatory deliberations as lawmakers seek clear, enforceable standards to strengthen crypto-market resilience.

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