Senator Elizabeth Warren, a Massachusetts Democrat, expressed concern about the cryptocurrency market in a letter to Janet Yellen calling on the Treasury Secretary and regulators to develop a “comprehensive and coordinated” framework to tackle dangers in the cryptocurrency market.

Elizabeth Warren – US Senator

In the letter, Warren mentioned the Financial Stability Oversight Council (FSOC) “must act quickly to address cryptocurrency risks and regulate the market within its legal jurisdiction to ensure the safety and stability of our consumers and our financial system”.

“As the demand for cryptocurrencies grows and they become more integrated into our financial system, consumers, the environment and the financial system are increasingly at stake.”

From Warren’s perspective, the unregulated crypto market poses vital dangers for hedge funds and banks. She additionally cited considerations about the use of cryptocurrencies in cyberattacks and the risk posed by stablecoins.

In the US Senate, Warren is one of the most hostile and demanding cryptocurrencies. The calls for on crypto regulation have elevated in latest months due to the obvious enhance in crypto ransomware assaults and the environmental affect of Bitcoin mining.

Like Bitcoin journal reported, the US Securities and Exchange Commission has proposed to work with Congress to introduce broader regulation of cryptocurrencies. Chairman Gary Gensler informed a Congressional subcommittee in March that the SEC spends solely $ 325 million yearly on analysis into blockchain expertise.

Despite Warren’s criticism of crypto belongings typically, she seems to be way more open to the thought of ​​central financial institution digital foreign money (CBDC). The US Federal Reserve (Fed) is at the moment investigating the improvement of CBDCs, however has not but printed any concrete plans.

Community response

Warren’s transfer has drawn robust criticism from the crypto community.

Mike Novogratz, CEO of Galaxy Digital to speak that what she does doesn’t make the Massachusetts Senator seem “too progressive”.

“Banks have charged 12 billion overdraft fees, a large amount of ATM fees, and quite a few checking account fees. But they continue to crack down on cryptocurrencies, where savings and transfer fees are only a fraction of those charged by banks. tonot a lot W.arr. It does not appear too superior. “

Brad Garlinghouse, CEO of Ripple, has recognize The story is optimistic as lawmakers have made advances in understanding cryptocurrencies.

“Warren acknowledged the want to enhance the present banking and funds system. Cryptocurrencies and blockchain have been initially created to give people who find themselves consistently on the edge entry – and lots of corporations are utilizing this expertise for exactly this goal. “

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