Senator Elizabeth Warren Calls for Stricter Crypto Regulations to Protect Taxpayers from Fraud and Risk of “Crypto Collapse”

Elizabeth warren expressed her support for the sec and its chair, gary gensler, in their efforts to bring long-standing security laws to the cryptocurrency space. warren proposed that the sec must use its full regulatory powers and that congress should provide the agency with more resources and authority to make sure it can take on the industry effectively. she also accused “crypto-friendly” banks such as silvergate of opening the banking system to the risk of a “crypto collapse” that could leave american taxpayers to foot the bill.

Happened in december 2020, when warren co-signed a bill called the digital asset anti-money laundering act with u.s. senator roger marshall. the bill would place know-your-customer (kyc) requirements on blockchain infrastructure providers and participants operating in the united states. warren praised the agency for blocking bitcoin exchange-traded funds (etfs) from hitting the market.

Believes that it is the regulators’ job to protect the banking system and taxpayers from the risk of crypto fraud and that they have the tools to do so. she attributed the lack of regulation in the crypto market during the trump administration to “junk tokens and unregistered securities, rug poles and ponzi schemes, pump and dumps, money laundering, and sanctions evasion”. her analysis showed that in 2017, 80% of initial coin offerings were scams, resulting in investors losing $9 million each day. she also cited the collapse of several crypto companies in 2022 as a reminder of the need for stricter regulation.

By Evey Lovelace

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