Democratic senator and former US presidential candidate Elizabeth Warren, a longtime crypto critic, wants the SEC to redouble its crypto enforcement efforts.
«The recent turmoil in the crypto space will only continue unless a host of regulators strengthen protections.».
Either way, Elizabeth Warren’s comments came during a virtual keynote with the American Economic Liberties Projects on January 25. That she is part of a growing inter-ideological movement to combat monopolistic corporations and the systems that entrench her power.
«The commission has been loud and clear that cryptocurrencies do not go through long-standing security laws that protect investors and ensure the integrity of our financial markets.».
Elizabeth Warren Calls on Congress to Help the SEC Fight Crypto Fraud
«We need strong supervision and consumer protection. And the only people who should be afraid of that are scammers.».
Indeed, Senator Elizabeth Warren praised the efforts of the chairman of the United States Securities and Exchange Commission (SEC), Gary Gensler, to control the crypto market. But, she said the regulator still needs to do more to tighten its scrutiny of the industry in an effort to combat fraud.
«This is the right approach: the SEC has the right rules and the right experience. And Gary Gensler is proving that he’s the right leader to get the job done.».
However, there are many in the industry and even in Congress who they question Gary Gensler’s ability to do his job. In fact, the president has been accused of being soft on Sam Bankman-Fried and FTX.
Likewise, Warren said the SEC also needs more support from Congress and called on other regulators to step up enforcement in the crypto sector. Since the responsibility of combating fraud related to cryptocurrencies should not rest solely with the SEC.
«The SEC needs to use the full force of its regulatory powers in the full».
Crypto miners need to be supervised
«Crypto mining companies are polluting communities. They are overloading power grids and raising utility costs in communities from Texas to New York».
Warren also called on environmental agencies to go after crypto miners, whom he accused of raising energy costs and polluting the environment.
The environmental impact of crypto mining itself has long been an issue that regulators cite in calls to ban cryptocurrencies.
The threat to our national security is growing
«You need to protect consumers, educate investors. And look for meaningful consequences for bad actors.».
In closing, Elizabeth Warren also called on Congress to provide the SEC with the necessary resources to ensure that the crypto market can be regulated.
«In pockets of this market where regulators may not have the authority they need, Congress should provide the tools to get the job done.».
I close with this phrase from Elizabeth Warren: «Crypto fraud is a big problem, but it’s one we can fix».
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