US Senator Says Too Many Crypto Firms Able To Defraud Customers – Urges SEC To Regulate – Regulation Bitcoin News

US Senator Says Too Many Crypto Firms Able To Defraud Customers – Urges SEC To Regulate – Regulation Bitcoin News

US Senator Elizabeth Warren says that “too many crypto firms have been able to defraud customers and leave ordinary investors holding the bag while insiders walk away with their money.” She emphasized the need for stricter rules, calling on the Securities and Exchange Commission (SEC) and Congress to take action on cryptocurrency regulation.

US senator says cryptocurrencies need stronger regulation

U.S. Senator Elizabeth Warren (D-MA) expressed her concerns about investing in cryptocurrencies in an interview with Yahoo Finance Live last week after several crypto firms filed for bankruptcy protection.

Calling on the US Securities and Exchange Commission (SEC) to act, she stressed:

Congress needs to act, but the SEC has a responsibility to use its authority to put up guardrails and crack down on crypto actors who break the rules.

“I have been sounding the alarm about cryptocurrencies and the need for stronger rules to protect consumers and financial stability,” the senator added.

Last week, a crypto lender Celsius Network filed for bankruptcy protection after freezing withdrawals. A week earlier, another crypto lender, Voyager Digital, filed for bankruptcy protection. The company cited contagion in crypto markets and a bankrupt crypto hedge fund Three capital arrowsLoan default as reasons.

Warren emphasized:

Too many crypto firms have been able to scam customers and leave ordinary investors holding the bag while insiders make off with their money.

SEC Commissioner Hester Peirce expressed concerns about the securities watchdog in May dropped the ball on the regulation of cryptocurrencies. “We can go after fraud and we can play a more positive role on the innovation side, but we have to get there, we have to work… I haven’t seen so far that we are ready to do that work,” she thought.

Gary Gensler, the chairman of the SEC, was criticized for taking focused on implementation approach to crypto regulation. In May, the securities watchdog said it almost would twice as big crypto unit of his enforcement department. Last week, Gensler said what investors can expect from the SEC on the crypto regulatory front.

Senator Warren has repeatedly pressed Gensler to step up crypto oversight. In July last year, it warned of the growing risks of cryptocurrency trading, urging the securities regulator to “use its full power to address these risks.” She also said that decentralized finance (defi). the most dangerous part cryptocurrencies, urging regulators to crack down on stablecoins and defi platforms “before it’s too late.”

In May, she demanded answers from financial services firm Fidelity Investments regarding the company’s decision to allow bitcoin investments in 401k plans. Fidelity’s move has upset the Ministry of Labour. “We have serious concerns about what Fidelity did,” said Ali Khawar, acting assistant secretary of the Department of Labor’s Employee Benefits Administration. The senator has also repeatedly bashed bitcoin impact on the environment.

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Congress, Elizabeth Warren, crypto elizabeth warren, Elizabeth Warren crypto regulation, cryptocurrency elizabeth warren, Elizabeth Warren Gary Gensler, elizabeth warren sec, Gary Gensler, Gary Gensler crypto, SEC, sec crypto

What do you think of US Senator Elizabeth Warren’s comments? Let us know in the comments section below.

US Senator Says Too Many Crypto Firms Able To Defraud Customers – Urges SEC To Regulate – Regulation Bitcoin News

Kevin Helms

An Austrian economics student, Kevin discovered Bitcoin in 2011 and has been an evangelist ever since. His interests lie in bitcoin security, open source systems, network effects, and the intersection between economics and cryptography.




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