Senator Elizabeth Warren and consumer advocacy groups criticized plans by retailers, including Amazon and Walmart, to potentially issue stablecoins. This move is seen as a consequence of pending legislation, the GENIUS Act, that could allow large corporations to create their own dollar-pegged cryptocurrencies. Warren pointed out that the GENIUS Act contains a significant loophole that could empower major tech firms to issue private currencies, threaten consumer privacy, and undermine competition. This criticism comes as the legislation approaches a final vote in the Senate. Major retailers may issue stablecoins as a way to collect customer data and avoid substantial fees incurred from traditional payment processors. Other organizations, including the Consumer Federation of America, warned that allowing tech companies to issue stablecoins may lead to financial instability and concentration of power in the market. The GENIUS Act, if enacted, would create a legal framework for stablecoins in the U.S., raising concerns about the potential risks to consumers and market competition.

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