Senator Elizabeth Warren Says The Crypto Firms Are Afraid Of A Strong SEC

Key Points:

• Elizabeth Warren said the SEC has fought to safeguard investors from crypto products and has blocked bitcoin exchange-traded funds from entering the market.
• She also praised the commission’s enforcement actions against celebrity crypto promoters such as Kim Kardashian and crypto exchanges like Coinbase (COIN) for alleged insider trading.

Senator Elizabeth Warren (D-Mass.) applauded the country’s securities regulator and its chairman, Gary Gensler, for their efforts to oversee the crypto business and urged legislators to provide the watchdog with the resources and power it needs to keep things running, according to Coindesk.

After former President Donald Trump’s regulators allowed it to explode, Gensler, who took over the Securities and Exchange Commission in 2021, has had to put the genie back in the bottle and bring the crypto ecosystem into regulatory compliance, the senator said Wednesday in an interview with the American Economic Liberties Project.

The SEC has fought to safeguard investors from crypto products and has blocked bitcoin exchange-traded funds from entering the market, according to Warren, who has been a prominent opponent of the sector, notably the environmental effect of cryptocurrency mining.

She also lauded the commission’s enforcement operations against celebrity cryptocurrency supporters like Kim Kardashian and cryptocurrency exchanges like Coinbase (COIN) for suspected insider trading.

And, most importantly, it appears that the commission is still ramping up. That’s why the industry is scared of a strong SEC. And that’s why it’s spending millions of dollars each year lobbying to escape SEC oversight.

 Warren said.

Warren has also been looking into the November collapse of crypto exchange FTX, which sent shockwaves across the industry and spurred authorities to step up efforts to enhance oversight. She has demanded that FTX’s creator, Sam Bankman-Fried, be prosecuted to the fullest extent of the law.

The SEC should double down and use its tools to enforce the rules, and where the SEC needs more cops on the beat, then Congress needs to step up with the resources and the new authorities that are needed to make sure the SEC can do its work at full strength in every corner of the crypto market.

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