Senator Elizabeth Warren urges tougher regulation of cryptocurrencies in the United States

Democratic Senator Elizabeth Warren called for U.S. Treasury Secretary Janet Yellen to lead the development of “a coordinated and consistent regulatory strategy to reduce the growing risks that cryptocurrencies pose to the financial system.”

In a July 26 letter, the senator urges the secretary to use the powers of the chair of the Financial Stability Oversight Council to take immediate action to reduce the risks associated with cryptocurrencies.

“I am increasingly concerned about the threats that cryptocurrencies pose to investors, consumers and the environment in the absence of adequate regulation in the United States. Yet demand for cryptocurrencies continues to grow. These assets are becoming more deeply embedded in our financial system,” the letter says.

In Warren’s view, the Council should identify potential systemic risks “that go beyond investor and consumer protection.”

Last month the senator criticised cryptocurrency networks for their high energy consumption, calling for tighter federal regulation.

The Financial Stability Oversight Council was created in 2010. In addition to the secretary of the treasury, it includes the heads of Fed, SEC, CFTC and other agencies.

Recall, recently Janet Yellen urged the rapid development of a regulatory framework for regulating stablecoins.

FSOC Crypto Letter 07.26.2021 by ForkLog on Scribd

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