Senator Elizabeth Warren of the United States asks the Securities Exchange Commission (SEC) to step up its enforcement of cryptocurrency laws, pointing out that the sector is on the edge of what’s approaching.
Warren asserts in an interview that the SEC has taken enforcement action against notable crypto promoters for failing to make public disclosures about their compensation. It has pursued “insider trading” claims against employees at exchanges like Coinbase. The SEC has filed charges against crypto crooks for defrauding common investors out of millions of dollars.
According to the senator, since Gensler became chairman of the SEC in April 2021, the Commission has made considerable progress in resolving some of the issues that the previous SEC officials under the Trump Administration had brought up.
The last SEC administration, according to Warren, basically gave the “green light” to the opening of a cryptocurrency market filled with garbage tokens, unregistered securities, rug pulls, Ponzi schemes, pump and dumps, money laundering, and sanctions violations. However, it is currently being fixed under Gensler’s supervision.
Warren stated:
“It appears that the commission is still ramping up. That is why the industry is scared of a strong SEC, and that’s why it is spending millions of dollars each year lobbying to escape SEC oversight.”
Warren stated that she believes the SEC and its chairman, Gary Gensler, are best prepared for the role, although others in the cryptocurrency business would prefer to work with the CFTC. She also commended the organization for preventing the market entry of Bitcoin exchange-traded funds (ETFs).
Another justification for the need for the SEC and more extensive regulation, according to Warren, is the collapse of several cryptocurrency businesses in 2022, including Celsius, FTX, Voyager Digital, and Three Arrow Capital.
As part of her appeal for environmental agencies to take action against cryptocurrency miners, Warren also charged them with increasing energy costs and degrading the environment. Regulators have long cited the negative effects of cryptocurrency mining on the environment as a reason to restrict cryptocurrency.
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