U.S. Senator Elizabeth Warren (D-Mass.) has renewed her call for tougher cryptocurrency oversight, urging that rules be crafted in the public interest rather than shaped by the industry itself. Speaking in an interview with MSNBC, Warren emphasized that investor protections and safeguards against financial instability must be at the heart of any legislative effort.
Ban on Lawmakers Trading Crypto Proposed
A central element of Warren’s proposal is a ban on elected officials trading cryptocurrencies. She argued that such restrictions would help eliminate conflicts of interest and ensure lawmakers are making decisions based solely on public policy considerations, not personal financial gain.
Guardrails to Prevent Economic Fallout
Warren warned that without stronger regulatory “guardrails,” cryptocurrencies could cause significant economic disruption. While she acknowledged that some rules are already in place, she described them as “weak” and inadequate to mitigate systemic risks.
The Massachusetts senator has long been skeptical of the crypto sector, often pointing to its potential to destabilize markets if left unchecked. Her comments reflect a growing concern in Washington over how digital assets could impact the broader financial system.
No Rejection of Stablecoin Bill, But Calls for Broader Framework
In a notable shift in tone, Warren did not criticize the GENIUS Act, a major stablecoin bill she voted against earlier this year. Instead, she called for broader additions to market structure legislation, stressing the need to close oversight and risk management gaps.
Her focus, she explained, is not on blocking individual measures but on ensuring the overall regulatory framework addresses the full range of risks posed by the evolving crypto market.
Trump’s Crypto Earnings Spark Scrutiny
Warren’s renewed push for regulation comes as former President Donald Trump’s financial disclosures revealed more than $57 million in earnings from World Liberty Financial, the company behind the USD1 token.
Although Trump denies directly profiting from the token, critics argue that his administration’s recent decision to allow cryptocurrency investments in 401(k) retirement plans presents a conflict of interest. Analysts have warned that such policies could expose American pensions to the volatility of digital assets.
Industry Sees Signs of Common Ground
Despite Warren’s reputation as one of the industry’s fiercest critics, some in the crypto sector view her latest remarks as an opening for more constructive dialogue.
Justin Slaughter, vice president of regulatory affairs at crypto investment firm Paradigm, welcomed her recognition of the need for regulation. “It’s a good sign from one of the industry’s toughest critics,” Slaughter said, noting that her current focus appears to be on strengthening existing proposals rather than rejecting them outright.
Toward a More Balanced Crypto Framework
While Warren remains cautious about the risks associated with digital assets, her latest statements suggest she is open to a regulatory path that balances investor protection with market integrity — provided it is designed independently of industry influence.
Her approach could mark a shift toward more structured, bipartisan discussions about where cryptocurrencies fit within the U.S. financial system and how they can be integrated without compromising stability or public trust.
