Elizabeth Warren: Congress and the regulator should take a tougher stance on cryptocurrencies

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The Democratic senator called on the US parliament to strictly control the young crypto industry in order to protect customers and investors.

Elizabeth Warren demands thatcolleagues in Congress and from the U.S. Securities and Exchange Commission (SEC) to take a tougher stance on cryptocurrenciesdue to the recent high-profile bankruptcies of lenders such as Celsius, Vauld, Voyager, and BlockFi. According to the parliamentarian, Congress should act in full force, and the SEC must use its powers to protect the market fromScam.

As Warren put it, too many crypto firms have been able to scam their customers and ordinary investors while insiders have been running away from with money.

Last December, the senator wrote a letter to the management of bitcoin mining company Greenidge in which she raised the issue of "high energy consumption and carbon emissions."This, Warren argued, could harm the environment and raise the cost of electricity for other consumers.

At the same time, according to Warren, decentralized finance (DeFi) is one of the most "shadowy parts" of the crypto industry.The senator clarified that the actual lack of regulation leads to the confusion of scammers with real investors and cryptocurrency traders.

Warren previously stated that what is happening inthe crypto industry is in many ways similar to the preconditions for the 2008 crisis. At the same time, the senator actively called on the government to accelerate the development of a digital dollar (CBDC).