US Senator continues to sharply criticize stablecoins

Stablecoins are in the spotlight again as U.S. Senators launch an attack on dollar-pegged cryptocurrencies in the latest call to fight the industry.

Massachusetts Senator Elizabeth Warren is again leading the cryptocurrency indictment. In a video released on Dec. 15, she said stablecoins pose risks to consumers and the economy because they “support one of the worst parts of the crypto world, DeFi, where consumers are least protected from fraud”.

Senator Elizabeth Warren

This isn’t the first time she has referred to the crypto industry as “seedy” or anything like that. In July, the senator furiously said that a “mysterious super programmer” was behind the cryptocurrency, making it a threat to the US financial system.

This latest comment was made at a Senate Committee hearing on Banking, Housing and Urban Affairs on December 14th. She said:

“Stablecoins pose a risk to consumers and our economy. They support one of the worst parts of the crypto world, DeFi, where consumers are least protected from fraud. Regulators need serious restraint before it’s too late. “

Stablecoins threaten the traditional financial system in which the Federal Reserve controls the dollar and have plunged the economy into a crisis with unprecedented money printing that resulted in 40 years of high inflation rates.

The Senator must do this with a view to consumer protection.

Senator Sherrod Brown also called cryptocurrencies “magic money” at the hearing. Brown opened the hearing with an appreciation for stablecoins and their relationship to this “new imaginary economy.” He added that they make it easier for risky users to toss money into volatile and sometimes fraudulent cryptocurrencies.

Just a week ago, several crypto CEOs explained to Congress the role of stablecoins and all about the industry to allay those concerns and negative comments. These efforts appear to be “in one ear and out of the other” as policy makers are vehemently evaluating cryptocurrencies.

The hearing took place the same day that Tether was hit by another lawsuit, which CTO Paolo Ardoino described as “nonsense and blindly copied”.

Still, there were six senators who fought to support the industry. In a December 14 letter to Treasury Secretary Janet Yellen, Senators Rob Portman, Mark Warner, Mike Crapo, Kyrsten Sinema, Pat Toomey and Cynthia Lummis called for specific regulations to be drawn up.

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Annie

According to Cryptopotato

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