Democratic Senator Elizabeth Warren has urged Congress and the US Securities and Exchange Commission (SEC) to act more assertively on cryptocurrencies.
Her comments followed a spate of high-profile cryptocurrency lenders filing for bankruptcy with Vauld, Celsius, Voyager and BlockFi all going through a difficult period.
Speaking to Yahoo Finance on Monday, the senator said that both the SEC and Congress must do more to ensure that there are proper safeguards to protect consumer interests as investors are on the hook for heavy losses.
It’s unlikely that embattled cryptocurrency lenders would be able to restore all consumer funds. That is why the senator has said that competent authorities should do more to introduce “guardrails” and finally hear her call to action to pass tougher rules on the sector.
Too many cryptocurrency firms have been able to “scam” their customers, Warren said, adding that if there is no legal response, they will continue to do so.
Apart from protecting consumer interests, Warren has been passionate about making sure that whatever regulation passes, it passes in the context of ensuring that the environment is protected.
Warren wrote to Greenidge Bitcoin mining company’s CEO Jeff Kirt cautioning the executive about the serious impact the high-energy use required in the mining process could have on the environment.
Warren has been acting on DeFi as well, and saying that with absent regulation, scammers and cheaters have proliferated, in her own words.
She didn’t fail to criticize Fidelity Investment, a pensions and retirement fund, for its choice of accepting cryptocurrencies. All of this, Warren said called for timelier regulatory action from Congress and SEC.
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