US Senator, Elizabeth Warren Hammers on Crypto Regulations
The resolve of US Senator Elizabeth Warren is strong as she renews calls for the regulation of the cryptocurrency sector in a letter addressed to the US Treasury. Senator Warren is notorious for her anti-crypto stance and has been at the forefront of the clamor for regulations. In the letter specifically addressed to the US Treasury Secretary, Janet Yellen, she reiterated the need for a ‘cohesive and comprehensive’ crypto regulatory approach.
The Senator had stated her increasing concerns about the implications of digital assets and their sporadic growth. According to her, the US financial infrastructure could be threatened by some risks- which she outlined- if regulations are not enacted. These risks include the extreme exposure of hedge funds to crypto assets, operational risks to banking institutions, stablecoins, ransomware attacks and decentralized finance.
Senator Warren Says DeFi is an ‘Opaque Corner’, Abets Anonymity
While speaking on DeFi, the senator declared that the sector is an ‘opaque corner’ of the crypto market and harbours tremendous risks for the financial infrastructure. Warren had given a reason for this assertion, saying that the anonymity the sector provides to all kinds of projects, including the shitty ones, is where the dangers lie.
Senator Warren also warned of the dangers of a non-regulatory approach. She had earlier stressed the need for a regulatory framework on crypto back in July. This was in another letter addressed to the Chairman of the US SEC, Gary Gensler where she issued a deadline before or by which the commission should have come up with a framework.
SEC Chairs Share Same Belief with Senator Warren
Gary Gensler interestingly shares the same views on crypto regulations with the senator. In a different report, Chair Gensler stated that there should be a regulatory infrastructure around crypto exchanges in the country. At a different time, Gary Gensler also criticized the regulatory vacuum on stablecoins, which he claimed were displacing the US dollar as per their soaring popularity. In addition, he said stablecoins provided people with the avenue to evade taxes, including money laundering and terrorism financing.
Senator Warren has rubbished flagship cryptocurrency, Bitcoin, calling it a lousy investment and not a store of value. Her rantings against Bitcoin earned her an ‘unfolllw’ Twitter’s founder, Jack Dorsey. The senator is not backing down on crypto regulations. In fact, her voice seems to be the loudest among the calls for regulations.
In contrast, US SEC Commissioner Hester Peirce have on the other hand of the rope advocating for a mild approach to the regulations. The commissioner claimed that adopting the stringent approach will frustrate emerging technologies. A week ago, Hester had berated the US SEC for being slow on a Bitcoin Exchange-traded fund. She compared the US to Canada, which already have 3 Bitcoin ETFs.
Meanwhile, the US SEC is yet to approve any of the Bitcoin ETFs applications submitted to it. Some experts are of the opinion that an ETF is unlikely this year. But for firms like Grayscale, a Bitcoin ETF is a must.
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