While there are crypto advocates such as Sen. Cynthia Lummis, there is also Bitcoin critic US Senator Elizabeth Warren who has written to SEC Chief Gary Gensler to regulate the market and protect people from crypto scams.
Senator Elizabeth Warren of Massachusetts, a vocal critic of Bitcoin, has written to Securities and Exchange Commission (SEC) Chairman Gary Gensler, expressing her concerns about the lack of regulation in the cryptocurrency sector.
Senator Warren expressed concern about the “highly opaque and volatile” crypto market’s mounting threats.
Senator Warren stated that, despite increasing investor participation in the crypto market, it lacks the same basic investor protection as traditional markets.
She also stated that between October 2020 and March 2021, almost 7,000 people lost a total of $80 million to crypto frauds.
The top regulatory watchdog was questioned by a US senator about the steps it has taken to protect investors trading and investing in cryptocurrencies.
She also urged the SEC chairman to make recommendations to Congress on how to regulate the digital asset market.
Senator Warren acknowledged the market’s growing desire for cryptocurrency exchanges, but claimed that a lack of rules leaves investors vulnerable to “manipulators and scammers.“
She urged the Securities and Exchange Commission to lay the framework for regulating the rapidly expanding sector.
“These regulatory gaps endanger consumers and investors and undermine the safety of our financial markets. The SEC must use its full authority to address these risks, and Congress must also step up to close these regulatory gaps.” Warren said.
Because of its growing popularity among investors, there has been a growing push for the crypto market to be regulated in the United States.
In the recent past, some of the top regulatory leaders, including SEC Chairman Gensler, have called for stricter rules.
Gensler has been asking for stringent investor protection measures since assuming office in April of this year but has yet to present any proposals or guidelines to suggest urgency.
Bitcoin has even been kept off the SEC’s regulation agenda for 2021.
The approval of the first Bitcoin ETF is the most crucial issue of discussion from a regulatory standpoint. Over the last six months, the SEC has postponed judgments on three Bitcoin ETFs.