On Wednesday, Senator Elizabeth Warren had some strong words to say regarding the crypto industry, as she called on the SEC to take more action in countering crypto fraud.
The Massachusetts Senator delivered the prepared remarks to the American Economic Liberties project and said that a strong Securities and Exchange Commission (SEC) was the biggest fear of industry players.
Enforcement actions
Warren said that enforcement actions had been brought by the SEC against celebrities for promoting crypto without publicly disclosing their compensation.
It had also targeted employees at crypto exchanges for insider trading, such as those at Coinbase, and had also brought charges against criminals for stealing millions of dollars from ordinary investors.
She also added that the SEC was just getting started. Other than the agency, there are a number of other US agencies that have also jumped into the crypto waters.
These include the Federal Deposit Insurance Corporation (FDIC), the Federal Trade Commission (FTC), the Commodity Futures Trading Commission (CFTC), and the Department of Justice (DOJ).
A number of State agencies have also done the same. According to Warren, some crypto industry players want the CFTC to be in charge.
The SEC
However, she said that it is the SEC and Gary Gensler, its chairman, who is a better choice. She also appreciated their decision to not approve a Bitcoin ETF.
According to Warren, the agency has made it clear that the crypto space will not get a pass where the security laws are concerned, as they are designed to protect investors and uphold the financial markets’ integrity.
She stated that this approach was the right one because the SEC has the experience and rules and Gary Gensler has also shown that he is the right ruler leader who can get it done.
Conflict
While Senator Warren was full of praise for the chairman of the SEC, there are a number of her colleagues in Congress as well as crypto industry players who do not agree.
As a matter of fact, they have questioned the ability of the SEC boss when it comes to do his job. He was accused of going easy on the co-founder of the FTX crypto exchange, Sam Bankman-Fried.
Likewise, his decision to opt for regulation by enforcement has also drawn a lot of criticism, as he appears to arbitrarily pick and choose who to target and even drive some companies into bankruptcy.
Warren stated that the SEC needs to take more action and use its regulatory powers in their entirety for overseeing the crypto market.
She also added that Congress needs to provide the agency with the authority and new resources for ensuring it can deal with the crypto industry.
She highlighted the downfall of a number of crypto firms, including Three Arrows Capital, Voyager Digital, FTX, and Celsius Network in the last year and said that it showed the need for broader regulation.
She also urged environmental agencies to take action against crypto miners because they are polluting the environment and pushing up energy costs.
