US Senator Elizabeth Warren (D-MA) has warned of the growing risks of cryptocurrency trading. It recently asked the US Securities and Exchange Commission to address these risks at its own discretion.
Elizabeth Warren – US Senator
Senator Warren is a Democrat who chairs the Economic Policy Subcommittee of the Senate Banking Committee. Yesterday (July 8), she warned of the risks of cryptocurrency trading and criticized the SEC for the lack of regulatory oversight of the sector.
“While the demand for cryptocurrencies and the use of exchanges have skyrocketed, the lack of regulation has left ordinary investors targeted by manipulators and scammers.”
“These regulatory loopholes put consumers and investors at risk and undermine the security of our financial markets. The SEC must deal with the risks at its own discretion, and Congress must fill those regulatory loopholes as well. “
Warren also sent a letter to SEC chairman Gary Gensler on Wednesday (July 7) highlighting risk concerns in the cryptocurrency market. She stressed that cryptocurrency exchanges do not have the same basic protections as traditional exchanges.
The senator cited data from the Federal Trade Commission (FTC) showing that nearly 7,000 people reported losses of up to $ 80 million to crypto fraud in the six months to May.
Gary Gensler, who was trained in crypto and blockchain courses and became chairman of the SEC, said in May that crypto exchanges need more regulation but have yet to propose new ones.
“It is a very volatile asset class and public investments benefit from better investor protection on crypto exchanges.”
Warren asked Gensler to outline the potential impact of crypto exchanges on the SEC’s mission, whether additional investor protection is needed and regulatory coordination – international or not.
“The lack of regulations for basic investor protection is untenable.”
Warren said he needed answers from Gensler by July 28 on the SEC’s authority to protect consumers who invest and trade in cryptocurrencies and to determine what action by Congress is needed in the future.
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