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Senator Elizabeth Warren has asked all federal regulators, along with the Securities and Exchange Commission (sec), to control cryptocurrencies.
Warren recently spoke at a conference organized by the US Plan for Economic Freedoms and the Americans for Financial Reform. During the event, the Massachusetts Democratic Senator gave his opinion on last year's crypto crashes.
“Good start” for SEC
The crypto skeptic Warren singled out FTX, Celsius and Voyager for “collapsing under the weight of their own fraud, deceit and gross mismanagement.” However, she complained that, "when they go down, they take many honest investors down with them."
Nevertheless, Warren congratulated the SEC for getting off to a "good start" in the last two years. By keeping exchange-traded funds out of the markets, she said the regulator prevented crypto volatility from affecting the traditional banking system. The crypto-skeptic also praised the dry for the charge "crypto-scammers" who had scammed ordinary investors, referring to sam bankman-fried.
All Hands on Deck
Yet, in spite of the SEC’s best efforts, Warren believes that effectively handling cryptocurrencies requires the government’s whole regulatory capacity. "All of our regulators need to be involved," said Warren, who would also include the environment and banks.
Warren detailed some of the environmental costs of cryptocurrencies and what the regulatory impact might be. In addition to polluting communities, she stated that crypto-extraction operations have been the tension of electrical networks. This has led to higher public service costs "in Texas communities in New York," she added.
According to Warren, the Department of Energy and the Environmental Protection Agency already have the authority to require these minors to disclose. These disclosures, as overwhelming as Warren imagines, could make it very uncomfortable for these mining companies.
While the sec has effectively isolated the banking system to date, the member of the Senate Banking Committee has stated that crypto-friendly banks pose a growing risk. While more banks have begun to offer crypto services, Warren pointed out, "it is the job of banking regulators to isolate the banking system.”
The European Union confirms the Basle agreements.
Obviously, legislators in the European Union feel the same way about the law they passed earlier this week. The European Parliament’s economic affairs committee approved the final implementation of the Basel III accords. These international rules lay down, among other things, the capital requirements of banks.
The newly adopted amendment will oblige EU banks to fully support any portfolio of crypto assets. Critics fear that crypto assets are not clearly defined, which could lead to legal excesses.
The promoters believe that these prohibitive capital requirements will help to prevent instability in the world of cryptography from spreading through the financial system. The entry into force of the new provisions is foreseen for January. 2025.
