Cryptocurrency critic Elizabeth Warren continues push for greater industry regulation
By Bob Garcia
U.S. Senator Elizabeth Warren isn’t shy in her criticism of the cryptocurrency industry. In December, the Senior Senator from the State of Massachusetts introduced a bipartisan bill with Senator Roger Marshall of Kansas to prevent money laundering with cryptocurrency. Now Warren is warning of major turmoil in the blockchain asset industry if regulators fail to act.
On Wednesday, Elizabeth Warren said, “For all their talk of innovation and financial inclusion, crypto industry giants—from FTX to Celsius to Voyager—are collapsing under the weight of their own fraud, deceit and gross mismanagement. And when they sink, they take a lot of honest investors down with them.”
Warren is asking regulators such as the SEC and banking authorities to use the tools that are presently at their disposal to protect the public, educate investors, and create material consequence for anyone who breaks the rules.
Warren was quick to state, “Crypto fraud is a big problem, but it’s one we can fix.”
Although Warren didn’t mention embattled FTX Founder Sam Bankman-Fried by name, the U.S. Senator did laud the FTC for charging cryptocurrency crooks for defrauding the public at large. She also praised the SEC for effectively blocking Bitcoin ETFs and keeping the volatility associated with cryptocurrency away from the conventional banking system.
Warren also attacked the industry on environmental grounds, remarking, “Crypto mining firms are polluting communities, they’re straining power grids, and they’re driving up utility costs in communities from Texas to New York.” She added, “Both the Department of Energy and the Environmental Protection Agency have the authority to require crypto miners to disclose their energy use and their environmental impact.”