According to the Reuters report, Senator Elizabeth Warren, a Democrat who chairs the Senate Banking Committee’s Subcommittee on Economic Policy, expressed her concerns in a letter to Securities and Exchange Commission’s Chair Gary Gensler on Wednesday, in an effort that could help lay the groundwork for legislation to regulate the fast-growing cryptocurrency market. U.S. senator said she needed answers from Gensler by July 28 on the SEC’s authority to protect consumers investing and trading in cryptocurrencies and determine what future congressional action was needed.
U.S. oversight of the crypto market remains patchy.
“While demand for cryptocurrencies and the use of cryptocurrency exchanges have sky-rocketed, the lack of common-sense regulations has left ordinary investors at the mercy of manipulators and fraudsters,” the former Democratic presidential candidate said in a statement. “These regulatory gaps endanger consumers and investors and undermine the safety of the financial markets. The SEC must use its full authority to address these risks, and Congress must also step up to close these regulatory gaps,” Warren added.
Senator Warren is known for targeting cryptocurrencies.
Earlier, the U.S. Democratic Senator Elizabeth Warren went on a rant against cryptocurrencies during a session of the Senate Banking Committee discussing a U.S. government-backed central bank digital currency. Comparing decentralized crypto assets to a CBDC, the Senator said that crypto is a “fourth-rate alternative to real currency,” adding that “legitimate digital public money could help drive out bogus digital private money.” She had called out pump and dump schemes and price manipulation where she mentioned the meme-based cryptocurrency Dogecoin stating that “crypto is a lousy investment” compared to the stock market.
Now, the senator has asked SEC chair Gensler to outline the ways in which cryptocurrency exchanges may be undermining the SEC’s mission to ensure that markets are operating in a “fair, orderly, and efficient manner.