Elizabeth Warren, a member of the U.S. Senate Banking Committee, in an NBC interview compared the market for digital assets to the 2008 financial crisis. CoinDesk reports.
“The whole digital world resembles a bubble. What is its growth based on? People telling each other that everything will be fine, as it was with the housing market,” Warren explained.
According to the senator, people were confident in perpetual real estate growth until the market crashed in 2008.
She also proposed the Fed accelerate the development of a digital dollar. Warren believes that CBDC could help central banks improve the outlook of the digital segment of the financial market.
The senator added that sooner or later Bitcoin will be regulated by authorities. She did not specify how exactly the government plans to achieve such oversight.
In March, Warren introduced a bill allowing the U.S. Treasury to block transactions on Bitcoin exchanges involving addresses of individuals on sanctions lists. The initiative was criticized by the crypto community.
Earlier in September 2021, Warren highlighted the need to regulate the digital assets industry in the wake of the market crash and related disruptions to bitcoin exchanges.
Previously she called cryptocurrencies “the new shadow banks” that do not protect their users.
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