Elizabeth Warren Warns: Crypto Bills Could “Blow Up” Wall Street

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Massachusetts Democratic Sen. Elizabeth Warren is sounding the alarm, accusing President Donald Trump of chipping away at the Federal Reserve’s hard-earned independence with his repeated threats to oust Chair Jerome Powell. She also weighed in on the latest crypto bills, warning that Congress is on the verge of “sign[ing] off on very weak regulation.”

Warren Says Trump Threatens to “Crash” Markets With Powell Attacks

Warren made back-to-back appearances Wednesday evening, first on CNBC’s Squawk Box and later in an interview with Bloomberg. Speaking with Squawk Box host Andrew Ross Sorkin, the Massachusetts Democrat made it clear she’s unhappy with how President Trump is managing the U.S. economy—especially his threats aimed at Federal Reserve Chair Jerome Powell.

“Our Fed chair’s term does not run coextensive with the term of the President,” Warren insisted. “The President does not have the authority to fire the Fed chair.” Warren further said removing Powell—or even continuing to threaten it—would send destructive signals to global markets. If Powell were dismissed, she stated bluntly:

“I think they crash.”

Warren contended that the Fed’s reputation as an apolitical institution is key to maintaining financial stability—even as academic studies suggest that may not be the case. “The independence itself is a value,” Warren claimed. “It’s a value to the United States. It’s a value to our markets. If Donald Trump destroys that, then he brings down those markets. He burns something of value to the United States.”

Elizabeth Warren’s commentary was followed by a great deal of criticism against her.

Crypto Panic? Warren Calls Clarity Act a Danger to NYSE

The senator also joined Bloomberg TV to address the threats against Powell and voiced strong opposition to the House’s lineup of pending crypto bills, including the Genius Act, the Stablecoin bill, the Clarity Act, and legislation targeting central bank digital currencies (CBDCs). She criticized the Stablecoin bill and Clarity Act for their failure to address serious risks, stating:

“They don’t do anything about the Donald Trump corruption that is occurring… They also don’t put enough safeguards in place for consumer protection to make sure that terrorists and human traffickers and drug traffickers can’t use the system and guardrails to make sure that crypto isn’t used to blow up our entire economy.”

Warren issued a stark warning about a provision in the Clarity Act that would allow NYSE-listed companies to escape oversight. “It also has a provision in it that would let any company listed on the New York Stock Exchange opt out of SEC regulation by just digitizing themselves… You do realize that literally would blow up the value of the New York Stock Exchange.”

Bitcoin proponents on X were not feeling Warren’s latest statements, and it showed.

As usual, Warren’s remarks were quickly dissected across social media. “She’s become a millionaire by grifting for big banks and Wall Street,” one user claimed. “She is worried that her grift is coming to an end.” Another commenter didn’t hold back: “Elizabeth Warren needs to sit this one out. She’s made millions playing the game behind closed doors, now she’s panicking because the CLARITY Act threatens to blow the lid off the whole rigged system? Get the 🍑 outta here!”

Warren also criticized the Republican-led rescissions package, accusing them of attempting to back out of agreed-upon budget commitments by slashing foreign aid that supports AIDS relief and global health efforts. Many of Warren’s crypto assertions could fairly be seen as exaggerated or misleading. Take, for example, her claim that the Clarity Act would allow companies to “opt out” of SEC regulation simply by going onchain—a sweeping mischaracterization of what the bill actually outlines.

The bill’s actual intent is to draw clearer lines between digital assets that qualify as securities and those that don’t, with a strong emphasis on decentralization criteria. It doesn’t, as Warren suggested, hand companies like Amazon or General Motors a free pass to “digitize themselves” and slip past financial oversight. Critics argue she’s relying on fear-based rhetoric to fight legislation she’s ideologically opposed to. Her broad claims about systemic risk, deregulation, and criminal activity aren’t supported by the text of the bills or existing regulatory structures.

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2025-07-17 21:28