Senator Elizabeth Warren’s views have prompted prominent members of the crypto community to respond.
Senator Warren addressed the hazards involved with cryptocurrency in a letter to Treasury Secretary Janet Yellen, urging Yellen to develop a “comprehensive and coordinated framework.” To put it another way, the goal is to impose stricter regulations that will most certainly suffocate the industry.
Senator Warren isn’t the first to criticize the sector. She wrote to SEC Chair Gary Gensler earlier this month, requesting stricter controls on cryptocurrency exchanges. She also used the occasion to rehash tired concerns about cybercrime and environmental harm.
This time, however, it’s different since a number of crypto personalities have responded.
Senator Warren’s Remarks
Senator Warren urged Yellen to use her clout on the Financial Stability Oversight Council (FSOC) to ensure the crypto market’s safety.
“The FSOC must move fast to exercise its legislative authority to address the hazards of cryptocurrencies and regulate the market to protect consumers and our financial system.”
She went on to say that as cryptocurrencies gain in popularity, so do the threats they bring. She highlighted five specific dangers, which are as follows:
Hedge funds and other opaque investment vehicles expose you to risk. Banks’ Risks Stablecoins offer unique threats. Use in hacks that have the potential to destabilize the financial system The dangers of decentralized finance Senator Warren has also spoken to a number of news organizations on the issue. Senator Warren highlighted parallels while speaking on Squawk Box.
“It turns out that as long as people can peddle snake oil, nobody really cares about having decent pharmaceuticals that are safe and help patients.”
She maintained that regulations aimed at weeding out unscrupulous actors finally resulted in thriving and safe pharmaceutical business.
In light of this, she asked crypto regulators to act quickly. More retail investors will fall prey to fraud as a result of the delay.
The Bitcoin Community Reacts
In response, Galaxy Digital’s Mike Novogratz went on the offensive, claiming that DeFi can be a progressive force that provides more openness than banks.
“We would not have had the mortgage crisis if banks had the transparency of DeFi procedures. DeFi will triumph because it is superior. Settlement is [automatic]. Bearer assets are assets that are held by the bearer. Composability. Transparency.”
The billionaire investor also discussed financial blunders, specifically overdraft fees. Still, he didn’t express worries about money laundering and market manipulation, and he questioned why Senator Warren is still focused on “cleaning up” crypto.
The crypto sector, according to Novogratz, is stuck on know-your-customer rules. However, he is optimistic that solutions will be found. He concluded by indicating that Senator Warren is ignorant on the real subject at stake.
Max Keiser took a different approach to Senator Warren’s argument than deconstructing it and addressing particular concerns. The Bitcoin bull’s F*ck Elon Tour has been renamed F*ck Elon + Liz Warren World Tour.