Congress and the SEC must take a stronger stance against the cryptocurrency industry. This was stated by a memberUS Senate Banking Committee Elizabeth Warren, writes Yahoo Finance.
“I sound the alarm about cryptocurrencies andthe need for stricter regulations for consumer protection and financial stability. Too many companies have managed to deceive customers and leave ordinary investors with their noses, ”said the senator.
In her opinion, the head of the SEC, Gary Gensler, should begin to act in the near future.
Warren's statement came in the backgroundongoing problems with a number of crypto-related companies. On June 13, Celsius Network suspended withdrawals, exchanges, and transfers between accounts "due to extreme market conditions." A month later, the crypto lending platform filed for bankruptcy.
On July 5, it became known about the temporary introductionlimits on the withdrawal of funds by the CoinLoan platform due to "market conditions". Prior to this, a possible restructuring was announced by the Vauld platform supported by Peter Thiel.
Formerly cryptocurrency broker Voyager Digitallowered the daily withdrawal limit from $25,000 to $10,000 due to issues with Three Arrows Capital (3AC). In early July, the firm filed for bankruptcy.
A similar statement was sent by the hedge fund itself.The British Virgin Islands court ruled to liquidate 3AC, and the financial regulator of Singapore reprimanded the company for providing false information and exceeding the allowed threshold of assets under management.
How Celsius, 3AC and stETH problems will affect the price of Ethereum and the cryptocurrency market
In September 2021, Warren noted the need to regulate the digital asset industry amid the market crash and related disruptions to bitcoin exchanges.
Recall that in April 2022, the senator compared cryptocurrencies with the mortgage crisis in the United States.
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