Warren Pushes for Crypto Police, Cites Systemic Risks

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U.S. Senator Elizabeth Warren scrutinizes the crypto community once again. She states scams and manipulation within the industry aren’t accordingly punished. 

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In her most recent comment, Senator Warren called on U.S. policy makers and regulators to do more to police cryptocurrencies. This is the most recent in a series of comments made by the Senator which contain high skepticism toward the crypto space. 

Wednesday evening in an interview with Bloomberg TV, Warren’s choice of words appeared to welcome an increase in surveillance and authority to the rapidly growing industry. “Right now we don’t have any cops on the beat to speak of.” Warren believes that without crypto cops, there is room for inequality in the system.

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“So long as it’s an unregulated system, you may be pulling more people in so that they can get cheated and that’s not what we want.”

Also mentioned by Warren are the so-called  pump-and-dump schemes. She pointed out that while they are blatantly illegal in the stock market, tokens get a free pass. The unclarity of the industry was to blame. 

Along with Warren’s comment last week about threats from the crypto space, in early July she pleaded with the SEC to expedite their response to crypto regulations. Now, about a month later, SEC Chari Gary Gensler came out with sentiments for more enforcement in the crypto market. He also said tokens fit the bill of securities that already fall in line under U.S. laws. 

More regulations on the horizon 

In addition to Warren’s concern for unregulated scams and market manipulation, she also pushes for regulations to avoid system-wide risks. “The bigger it gets and the more it stays outside the financial system — something goes wrong, there’s a run on crypto or elsewhere in the economy, I don’t want the U.S. taxpayer to be the one that gets called on to back this up.”

She did have one positive remark towards the industry. The crypto industry provides financial services for those who are “unbanked”. She claims working with crypto could alleviate the burden of high fees to cash checks for those applicable to such conditions. 

Nonetheless, Warren still stands on the position that cryptocurrencies have not fulfilled their promise to the financial sector. The statement particularly targets victims of the volatility of the crypto market. 

As the new Senate bill comes to fruition, freedom within the crypto market is at stake. While waves of criticism prompted amendments, the crypto community is on guard. The United States is a global financial leader. Their decisions on crypto market regulation may set the stage for the world at large.

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Savannah Fortis is a multimedia journalist covering stories at the intersection culture, international relations, and technology. Through her travels she was introduced to the crypto-community back in 2017 and has been interacting with the space since.

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