Senator Elizabeth Warren of the United States is once again scrutinizing the crypto community. Scams and manipulation in the industry, she claims, are not appropriately punished.
Senator Warren recently urged policymakers and regulators in the United States to do more to police cryptocurrencies. This is the most recent in a string of remarks by the Senator expressing deep skepticism toward the crypto space.
Warren’s choice of words in an interview on Wednesday evening appeared to welcome an increase in surveillance and authority to the rapidly growing industry. “Right now, we don’t have any cops on the beat.” Without crypto cops, Warren believes there is room for inequality in the system.
“As long as it is an unregulated system, you may be attracting more people in order for them to be cheated, which is not what we want.”
Warren also mentions the so-called pump-and-dump schemes. She emphasized that, while they are clearly illegal in the stock market, tokens are exempt. The industry’s ambiguity was to blame.
In addition to Warren’s comments last week about threats from the crypto space, she pleaded with the SEC in early July to expedite their response to crypto regulations. Now, about a month later, SEC Chari Gary Gensler has expressed support for increased enforcement in the cryptocurrency market. He also stated that tokens fit the bill of securities that are already legal under US law.
More regulations are on the way.
Warren is concerned about unregulated scams and market manipulation, but she also advocates for regulations to avoid system-wide risks. “The bigger it gets and the more it stays outside the financial system — something goes wrong, there’s a run on crypto or elsewhere in the economy, I don’t want the US taxpayer to be called on to back this up,” he says.
She did make one complimentary remark about the industry. The cryptocurrency industry offers financial services to those who are “unbanked.” She claims that working with cryptocurrency could alleviate the burden of high cash-check fees for those who are subject to such conditions.
Nonetheless, Warren maintains that cryptocurrencies have not delivered on their promise to the financial sector. The statement specifically targets victims of the cryptocurrency market’s volatility.
As the new Senate bill becomes law, the crypto market’s freedom is at stake. While waves of criticism prompted changes, the cryptocurrency community is on high alert. The United States is the world’s financial powerhouse. Their decisions on crypto market regulation could set the tone for the rest of the world.