Congress and SEC should take a tougher stance toward the cryptocurrency industry. The remarks were made by Elizabeth Warren, a member of the Senate Banking Committee, according to Yahoo Finance.
‘I am sounding the alarm about cryptocurrencies and the need for stricter rules to protect consumers and financial stability. Too many firms have managed to defraud customers and leave ordinary investors high and dry,’ the senator said.
In her view, SEC Chair Gary Gensler should begin taking action soon.
Warren’s statement came amid ongoing problems with a number of crypto-related companies. On June 13, Celsius Network suspended withdrawals, exchanges and transfers between accounts ‘due to extreme market conditions’. A month later, the crypto-lending platform filed for bankruptcy.
On July 5, it emerged that the CoinLoan platform temporarily imposed withdrawal limits due to ‘market conditions’. Prior to that, Vauld, the platform backed by Peter Thiel, announced a possible restructuring.
Earlier, cryptocurrency broker Voyager Digital cut its daily withdrawal limit from $25,000 to $10,000 amid problems related to Three Arrows Capital (3AC). In early July, the firm filed for bankruptcy.
A similar filing was made by the hedge fund itself. The British Virgin Islands court ordered the liquidation of 3AC, and the Singapore financial regulator publicly reprimanded the company for providing false information and exceeding the permitted threshold of assets under management.
In September 2021, Warren highlighted the need to regulate the digital assets industry amid a market crash and related outages at Bitcoin exchanges.
In April 2022, the senator compared cryptocurrencies to the mortgage crisis in the United States.
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