During the Senate Bank Committee Hearing, U.S. Senator Elizabeth Warren revealed that she had sent a letter to Treasury Secretary Janet Yellen urging the Treasury Secretary to “act with urgency” on the regulation of the cryptocurrency market. The letter penned by the Senator brought up the ‘dangers’ posed by cryptocurrencies and asked the Treasury Secretary as Chair of the Financial Stability Oversight Council (FSOC) to to “act with urgency” to address the risk of cryptocurrencies.
Elizabeth Warren warns of cryptocurrency’s dangers.
“I have become increasingly concerned about the dangers cryptocurrencies pose to investors, consumers, and the environment in the absence of sufficient regulation in the United States.2 However, as the demand for cryptocurrencies continues to grow and these assets become more embedded in our financial system, the Council must determine whether these trends raise concerns beyond investor and consumer protection and extend to broader systemic vulnerabilities that could threaten financial stability,” the U.S Senator Elizabeth Warren wrote in the letter.
U.S Senator had previously called crypto “lousy and bogus” investments.
Elizabeth Warren pressed the matter of crypto regulation, bringing up the urgency and time constraints that regulation of this area involves, noting that the market could come under stress without quick action. “FSOC should review the matter (crypto regulations) and determine whether it is appropriate to utilize its statutory authority to contain the systemic risks posed by the growing crypto market. The longer that the United States waits to adapt the proper regulatory regime for these assets, the more likely they will become so intertwined in our financial system that there could be potentially serious consequences if this market comes under stress,” she mentioned in the letter. The U.S Senator is known for criticizing cryptocurrencies.