US Senator Urges SEC To Regulate Crypto Due To Scams

Elizabeth Warren, the US Senator, said that there are a number of crypto companies out there that scam their clients. She said that these companies make off with the money from investors who are left holding the bag. Therefore, the senator said that there was an urgent need to develop stronger rules for the crypto space. She urged Congress and the US Securities and Exchange Commission (SEC) to speed up the crypto regulation process.

Crypto investing concerns

The Democrat senator shared her concerns regarding crypto investments last week in an interview after a number of companies in the market had filed for bankruptcy. She emphasized that the SEC needed to take action right away.

She asserted that while Congress should also act, it is the responsibility of the SEC to leverage its authority to put a stop to crypto actors who are breaking the rules. The senator said that she had been sounding the alarm bell for a while now and had called for stronger rules to protect customers and ensure financial stability.

Crypto companies

Last week, crypto lending company Celsius Network had become the latest one to file for bankruptcy, just a month after it had frozen withdrawals on its platform. A week before that, another lending company called Voyager Digital had filed for bankruptcy. This company has said that there was an ongoing contagion in the crypto space and the loan default of crypto hedge fund Three Arrows Capital had pushed it over the edge.

The hedge fund itself had also filed for bankruptcy a week before. Warren stated that there were just too many crypto companies that were able to get away with scamming their clients and taking off with their money.

SEC’s stance

Back in May, Hester Peirce, the SEC Commissioner, had shared concerns about dropping the ball on crypto regulation. She said that they could target fraud and could take a more positive stance towards innovation, but they need to focus on regulation, which they have not done so far.

The chairman of the SEC, Gary Gensler, had also received criticism for avoiding an enforcement-centric approach to regulate the crypto market. The securities watchdog had said in May that they were planning on doubling their crypto unit’s enforcement division.

In the previous week, the SEC boss had also outlined what the markets could expect from the regulatory authority in regard to crypto regulation.

It should be noted that this is not the first time that Senator Warren has called upon the SEC to step up their crypto regulation. Last year in July, she issued a warning about the risks associated with crypto trading. She had urged the securities regulator to use its authority for addresses these risks. She had also referred to decentralized finance (DeFi) as the most dangerous aspect of crypto and had also urged regulatory authorities to take action against DeFi platforms and stablecoins before it was too late. She had also been concerned about the introduction of bitcoin investments in 401K plans by Fidelity Investments.

Leave a Reply

Your email address will not be published.


Payback Ltd Review – Is It a Legit Scam Recovery Company?

Payback Ltd Rating 4.6 Summary Read our Payback Ltd review at FStar Capital Forex and Cryptocurrency Trading blog, find the answer to your question “is Payback Ltd scam or legit recovery company” and much more! We have checked all the aspects of this recovery firm and we recommend Payback Ltd for fund recovery. You can […]

Polygon (MATIC): This Support Level Might Be Vital to Sustaining Bullishness

Polygon bulls have remained in the driver’s seat for approximately two months as they ensured the token’s spot above the 20-50 Exponential Moving Average. Meanwhile, this recovery established a crucial bullish cross on the 20 Exponential Moving Average and the 50 Exponential Moving Average. Breaching the 4-month trend-line support gave MATIC bulls enough strength to […]

Bitcoin has rejected $24k for Now While ETH Has Hit a 2-Month High

Bitcoin Could Not Get Past $24k   Bitcoin has reportedly ended the month of July mainly experiencing greens. The price of Bitcoin continued moving in the upward direction.  Since February of 2022, Bitcoin had not been able to climb higher at a significant rate. However, the price of Bitcoin had finally started showing signs of retracement […]

Disappointing GDP Results Cause Philippine Peso to Slip

On Tuesday, the trading price of the Philippine peso fell tremendously. Its value ended up experiencing the worst downward movement compared to the rest of the fiat currencies on Tuesday. The reason why the Philippine peso performed worse than its Asian peers was due to below-expectation GDP growth. Philippine’s GP growth was not as much […]

EUR Has Gained Momentum Against USD And It Is Currently At A Higher Ground

The trading price of the EUR/USD pair has improved tremendously in recent trading sessions. The data suggests that it is currently trading near the 1.0200 benchmarks. Euro Gains Momentum after Posting Eurozone Sentix Data The data surrounding the Eurozone Sentix was recently posted, showing that it has improved in the month of August. A downtrend […]