SEC News: Democratic Senator Elizabeth Warren, who chairs the Senate Banking Committee’s Economic Policy Subcommittee, expressed her concerns in a letter Wednesday to Securities and Exchange Commission Chair Gary Gensler, as reported by Reuters. The US senator said that by July 28, the SEC should seek a response from Gensler about its mandate to protect consumers who invest and trade in cryptocurrencies and determine what congressional action is necessary in the future.
There are concerns about cryptocurrencies
The former Democratic presidential candidate said in a statement:
“As the demand for cryptocurrencies and the use of cryptocurrency exchanges have skyrocketed, the lack of prudent regulation has left ordinary investors at the mercy of manipulators and scammers. These regulatory loopholes endanger consumers and investors and undermine the safety of financial markets. The SEC must use its full power to address these risks, and Congress must take steps to close these regulatory loopholes.”
Earlier, US Democrat Senator Elizabeth Warren made a statement against cryptocurrencies during a session of the Senate Banking Committee discussing a US 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 can help banish fake digital private money.” Talking about the prank-based cryptocurrency Dogecoin, he called for pumping and dumping schemes and price manipulation, noting that “crypto is a lousy investment compared to the stock market.”
The Senator asked SEC Chairman Gensler to outline the ways that cryptocurrency exchanges can undermine the SEC’s mission to keep markets running “fairly, regularly, and efficiently.”