US Senator Says Too Many Crypto Firms Are Able to Scam Customers — Urges SEC to Regulate

U.S. Senator Elizabeth Warren says that “too galore crypto firms person been capable to scam customers and permission mean investors holding the container portion insiders marque disconnected with their money.” She stressed the request for stronger rules, urging the Securities and Exchange Commission (SEC) and Congress to instrumentality enactment connected crypto regulation.

U.S. Senator Says Crypto Needs Stronger Regulation

U.S. Senator Elizabeth Warren (D-MA) voiced her concerns astir cryptocurrency investing successful an interrogation with Yahoo Finance Live past week aft respective crypto firms filed for bankruptcy protection.

Calling connected the U.S. Securities and Exchange Commission (SEC) to act, she emphasized:

Congress needs to act, but the SEC has a work to usage its authorities to enactment guardrails successful spot and ace down connected crypto actors that interruption the rules.

“I’ve been ringing the alarm doorbell connected crypto and the request for stronger rules to support consumers and fiscal stability,” the legislator added.

Last week, crypto lender Celsius Network filed for bankruptcy extortion aft freezing withdrawals. A week prior, different crypto lender, Voyager Digital, filed for bankruptcy protection. The institution cited contagion successful crypto markets and bankrupt crypto hedge money Three Arrows Capital‘s indebtedness default arsenic the reasons.

Warren stressed:

Too galore crypto firms person been capable to scam customers and permission mean investors holding the container portion insiders marque disconnected with their money.

SEC Commissioner Hester Peirce expressed concerns successful May that the securities watchdog has dropped the ball connected the regularisation of cryptocurrencies. “We tin spell aft fraud and we tin play a much affirmative relation connected the innovation side, but we person to get to it, we’ve got to get moving … I haven’t seen america consenting to bash that enactment truthful far,” she opined.

Gary Gensler, the president of the SEC, has been criticized for taking an enforcement-centric attack to crypto regulation. In May, the securities watchdog said it volition astir double the size of its enforcement division’s crypto unit. Last week, Gensler outlined what investors tin expect from the SEC connected the crypto regulatory front.

Senator Warren has been pressing Gensler to measurement up crypto oversight connected respective occasions. In July past year, she warned of the increasing risks of cryptocurrency trading, calling connected the securities regulator to “use its full authority to code these risks.” She besides said decentralized concern (defi) is the most unsafe part of crypto, urging regulators to clamp down connected stablecoins and defi platforms “before it is excessively late.”

In May, she demanded answers from fiscal services steadfast Fidelity Investments regarding the company’s determination to let bitcoin investments successful 401K plans. Fidelity’s determination has troubled the Labor Department. “We person sedate concerns with what Fidelity has done,” said Ali Khawar, Acting Assistant Secretary of the Labor Department’s Employee Benefits Security Administration. The legislator has besides repeatedly bashed bitcoin’s environmental impact.

What bash you deliberation astir the comments by U.S. Senator Elizabeth Warren? Let america cognize successful the comments conception below.