{"id":13291,"date":"2022-07-19T06:55:48","date_gmt":"2022-07-19T06:55:48","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/us-senator-says-too-many-crypto-firms-are-able-to-scam-customers-urges-sec-to-regulate-regulation-bitcoin-news\/"},"modified":"2022-07-19T06:55:48","modified_gmt":"2022-07-19T06:55:48","slug":"us-senator-says-too-many-crypto-firms-are-able-to-scam-customers-urges-sec-to-regulate-regulation-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/us-senator-says-too-many-crypto-firms-are-able-to-scam-customers-urges-sec-to-regulate-regulation-bitcoin-news\/","title":{"rendered":"US Senator Says Too Many Crypto Firms Are Able to Scam Customers \u2014 Urges SEC to Regulate \u2013 Regulation Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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U.S. Senator Elizabeth Warren says that \u201ctoo many crypto firms have been able to scam customers and leave ordinary investors holding the bag while insiders make off with their money.\u201d She stressed the need for stronger rules, urging the Securities and Exchange Commission (SEC) and Congress to take action on crypto regulation.<\/strong><\/p>\n

U.S. Senator Says Crypto Needs Stronger Regulation<\/h2>\n

U.S. Senator Elizabeth Warren (D-MA) voiced her concerns about cryptocurrency investing in an interview with Yahoo Finance Live last week after several crypto firms filed for bankruptcy protection<\/a>.<\/p>\n

Calling on the U.S. Securities and Exchange Commission (SEC) to act, she emphasized:<\/p>\n

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Congress needs to act, but the SEC has a responsibility to use its authorities to put guardrails in place and crack down on crypto actors that break the rules.<\/p>\n<\/blockquote>\n

\u201cI\u2019ve been ringing the alarm bell on crypto and the need for stronger rules to protect consumers and financial stability,\u201d the senator added.<\/p>\n

Last week, crypto lender Celsius Network<\/a> filed for bankruptcy protection after freezing withdrawals. A week prior, another crypto lender, Voyager Digital<\/a>, filed for bankruptcy protection. The company cited contagion in crypto markets and bankrupt crypto hedge fund Three Arrows Capital<\/a>\u2018s loan default as the reasons.<\/p>\n

Warren stressed:<\/p>\n

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Too many crypto firms have been able to scam customers and leave ordinary investors holding the bag while insiders make off with their money.<\/p>\n<\/blockquote>\n

SEC Commissioner Hester Peirce expressed concerns in May that the securities watchdog has dropped the ball<\/a> on the regulation of cryptocurrencies. \u201cWe can go after fraud and we can play a more positive role on the innovation side, but we have to get to it, we\u2019ve got to get working \u2026 I haven\u2019t seen us willing to do that work so far,\u201d she opined.<\/p>\n

Gary Gensler, the chairman of the SEC, has been criticized for taking an enforcement-centric<\/a> approach to crypto regulation. In May, the securities watchdog said it will almost double the size<\/a> of its enforcement division\u2019s crypto unit. Last week, Gensler outlined what investors can expect<\/a> from the SEC on the crypto regulatory front.<\/p>\n

Senator Warren has been pressing Gensler to step up crypto oversight on several occasions. In July last year, she warned of the growing risks of cryptocurrency trading, calling on the securities regulator to \u201cuse its full authority<\/a> to address these risks.\u201d She also said decentralized finance (defi) is the most dangerous part<\/a> of crypto, urging regulators to clamp down on stablecoins and defi platforms \u201cbefore it is too late.\u201d<\/p>\n

In May, she demanded answers<\/a> from financial services firm Fidelity Investments regarding the company\u2019s decision to allow bitcoin investments in 401K plans. Fidelity\u2019s move has troubled the Labor Department<\/a>. \u201cWe have grave concerns with what Fidelity has done,\u201d said Ali Khawar, Acting Assistant Secretary of the Labor Department\u2019s Employee Benefits Security Administration. The senator has also repeatedly bashed bitcoin\u2019s environmental impact<\/a>.<\/p>\n

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Congress<\/a>, Elizabeth Warren<\/a>, elizabeth warren crypto<\/a>, Elizabeth Warren crypto regulation<\/a>, elizabeth warren cryptocurrency<\/a>, Elizabeth Warren Gary Gensler<\/a>, elizabeth warren sec<\/a>, Gary Gensler<\/a>, gary gensler crypto<\/a>, SEC<\/a>, sec crypto<\/a><\/div>\n<\/div>\n

What do you think about the comments by U.S. Senator Elizabeth Warren? Let us know in the comments section below.<\/strong><\/em><\/p>\n

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\nKevin Helms <\/h6>\n

\nA student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

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Disclaimer<\/strong>: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com<\/a> does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.<\/p>\n<\/div>\n

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