Senator Warren urges Treasury Secretary Yellen to fight crypto threats

Senator Elizabeth Warren, a Massachusetts Democrat, has urged Treasury Secretary Janet Yellen and different regulators to develop a “comprehensive and coordinated” framework to deal with the dangers within the cryptocurrency market.

In a letter to Yellen, the Democratic senator mentioned the Financial Stability Oversight Board, also referred to as the FSOC, “should act rapidly to use its authorized powers to deal with the problem. The dangers of cryptocurrency and market regulation to the protection and stability of customers and our monetary system. She continued:

“As the demand for cryptocurrencies continues to develop and these property turn out to be extra built-in into our monetary system, our customers, the environment and our monetary system are threatened right this moment.

According to Warren, an unregulated cryptocurrency market poses important dangers for hedge funds and banks. She additionally cited issues about using cryptocurrencies in cyberattacks and the menace posed by stablecoins.

Related: Senator Warren questions SEC chairmen about lack of safety for crypto traders

In the US Senate, Warren has emerged as one of many largest critics of cryptocurrencies. In June, she described digital property like Dogecoin (DOGE) as “a fourth-rate alternative to real currency” and known as on the Senate Banking Committee to think about stricter laws.

Calls for regulation of cryptocurrencies have elevated in current months due to the obvious enhance in crypto ransomware assaults and the supposed environmental affect of Bitcoin (BTC) mining. As reported by Cointelegraph, the Securities and Exchange Commission has proposed to work with Congress to introduce broader regulation of cryptocurrencies. Gary Gensler, the newly appointed chairman of the securities fee, informed a subcommittee of Congress in March that his company spends solely $ 325 million a 12 months on analysis into blockchain expertise.

Related: Countries that account for greater than 90% of worldwide GDP are exploring CBDC areas

Despite her criticism of crypto property normally, Warren seems to be way more open to the thought of ​​a central financial institution digital foreign money, also referred to as CBDC. The Federal Reserve is within the technique of finding out the CBDC improvement however has no agency plans for implementation. For the most important central banks, the Fed is seen as behind the introductory curve for CBDCs.