In a press release by Reuters on July 8, Senator Elizabeth Warren called out the US and Securities Exchange Commission or the SEC on the poor regulation of cryptocurrencies and its potential risks to the market.
‘While demand for cryptocurrencies and the use of cryptocurrency exchanges have sky-rocketed, the lack of common sense regulations has left ordinary investors at the mercy of manipulators and fraudsters,’ Warren said.
Warren continued by saying that there were visible gaps in the regulation procedures set forth by the SEC. ‘These regulatory gaps endanger consumers and investors and undermine the safety of our financial markets. The SEC must use its full authority to address these risks, and Congress must also step up to close these regulatory gaps.’
Moreover, she talked about how ‘the lack of regulation to provide basic investor protections is unsustainable’. She then prompted the SEC to take action and come up with a resolution or a proposal by the end of the month.
According to Reuters, Warren also mentioned that she sent a letter to SEC Chairman Gary Gensler, expecting a reply by July 28 on how the SEC plans to fix the crypto regulations in the country. In her letter, the senator asked the chairman to outline the different ways crypto exchanges are taking advantage of the SEC’s regulations. She also talked about cryptocurrency platforms and how they lack protective measures.
Furthermore, she presented data in her letter to Gensler, talking about 7,000 different cases where investors lost a combined $80 million in 6 months.
Senator Warren is also the chair of the Senate Banking Committee Subcommittee on Economic Policy and is known for her opposition to cryptocurrencies. She has repeatedly claimed that Bitcoin and other cryptocurrencies are harmful to the environment and pose a threat on the internet. On the other hand, the SEC is responsible for the facilitation of investor activities on the internet.
The latest statement by Warren leaves the SEC and its representatives with the option to reply, however, there have been no developments as of yet.
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