According to Senator Elizabeth Warren, the United States needs more proactive crypto policies.
The US is known as a world-class leader when it comes to innovation and the adoption of new technologies. This is still the case with regard to blockchain technology and cryptocurrencies. As a matter of fact, some of the biggest crypto whales and industry players are US-based.
However, it appears that the country hasn’t had a clear-cut crypto regulation framework, and senator Elizabeth Warren wants that to change. In a recent statement, the senator appealed to the US Congress and SEC to institute tighter regulations to streamline the expanding industry.
Regulations To Curb Fraud
To some, the Senator’s call to formulate stricter regulations for the crypto industry may sound somewhat anti-crypto. Still, the fact that the crypto industry is known to be rife with fraud schemes is a clear pointer to why regulations are needed. In the senator’s view, regulations are clearly meant to protect investors and stop crypto entities from defrauding people. If anything, the recent collapse of a number of crypto-related investment firms is a huge wake-up call for policymakers.
She said,
“I sound the alarm about cryptocurrencies and the need for stricter regulations for consumer protection and financial stability. Too many companies have managed to deceive customers and leave ordinary investors with their noses.”
The Senator’s remarks come after a number of firms went under and led to investors losing their money. Celsius filed for bankruptcy in early July, followed by Three Arrow Capital (3AC) a few days later. Others affected include Vauld, Babel, and Voyager, all of whom have led to investors losing access to their funds.
SEC Needs To React
According to senator Warren, SEC chairman Gary Gensler should move with speed to initiate a process for the formulation of strict crypto regulations in the United States. Gary was known as a crypto enthusiast even before he took the mantle as SEC chairman.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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