Senator Elizabeth Warren, a long-time critic of the crypto industry, released a set of proposed standards to regulate the sector and curb what she calls the president’s crypto corruption.”

The Massachusetts Democrat denounced Republican colleagues in a statement sent to The Block, and accused them of seeking to give an “industry handout.” Warren said that a need for a crypto regulatory framework that reduces these risks is needed.

Although she is concerned that her Republican colleagues are aiming for another industry handout that gives the crypto lobby everything on its wish list: The blessing of the government’s approval, combined with crypto rules that are weaker than the rules every other financial actor must follow.”

The U.S. Senate Banking Committee will hold a hearing this morning titled “From Wall Street to Web3: Building Tomorrow’s Digital Asset Markets.” After passing legislation to regulate stablecoins in the Senate, setting it up for consideration in the House next week, senators are tackling a larger bill to determine how to regulate the cryptocurrency industry.

Senator Warren Champions Robust Anti‑Money Laundering

Elizabeth Warren emphasized that any future crypto law must include enforceable AML rules that are even stricter than those outlined in current proposals, such as the GENIUS Act. She warned that without tougher standards, cryptocurrencies could become a conduit for terrorism financing or sanctions evasion.

Furthermore, she emphasized the need for clear delineation among agencies such as the SEC, CFTC, and Treasury. She maintained that a transparent division of authority will reduce regulatory duplication, align with global standards, and mitigate “regulation by enforcement.

Moreover, Warren called for stringent reserve requirements, mandatory disclosure of reserve assets, and clear consumer protections. She described such oversight as crucial to safeguard against systemic shocks in the $250 billion stablecoin ecosystem.

Context and Next Steps Towards Crypto Regulations.

These proposals emerge at a pivotal moment. Last month, the Senate passed the GENIUS Act, a bipartisan bill that regulates stablecoins and requires issuers to hold liquid-asset reserves. However, Warren has criticized the bill’s AML and enforcement loopholes, arguing that they fall short of the protections needed to prevent illicit finance.

A Senate Banking Committee hearing scheduled for July 9, 2025, will explore regulatory landmarks, including the GENIUS Act and a companion bill concerning digital assets more broadly.