Massachusetts Senator Elizabeth Warren didn’t hesitate to criticize decentralized financing (DeFi). She expressed concerns about the impact on average investors of a run-on stablecoins.

Warren spoke Tuesday with Senator Banking Committee about stablecoins. questionedHilary Allen is a Professor at American University Washington College of Law and asked whether there could be a run-on of stablecoins that might threaten the United States financial sector. Though Allen said an “en masse” redemption of stablecoins from people who had lost faith in the tokens would be unlikely to have “systemic consequences” for traditional markets at present, the DeFi system would be more likely to feel the effects.