Elizabeth Warren, a skeptic of cryptocurrencies and a senator in the United States, has called for the Securities and Exchange Commission (SEC) to increase its crypto enforcement efforts.
Elizabeth Warren praises Gary Gensler
The statements made by Warren were part of an interview that took place on January 25 with the American Economic Liberties Projects.
The commended the work of the country’s securities regulator and its CEO Gary Gensler to monitor the cryptocurrency business and urged on legislators to provide the watchdog with the necessary resources and authorities to keep things moving forward.
The senator was of the opinion that since Gensler was inaugurated in as chairman of the SEC in April 2021, the Commission has made a decent start on resolving some of the issues that were caused by the previous leaders of the SEC during the Trump Administration.
And, most importantly, it appears that the commission is still ramping up. That’s why the industry is scared of a strong SEC. And that’s why it’s spending millions of dollars each year lobbying to escape SEC oversight.Elizabeth Warren
The adversary of cryptocurrencies also pointed the spotlight at crypto loan businesses, celebrity marketers, and inside traders, claiming that these parties are responsible for misleading and deceiving average investors.
However, Warren did not end her speech there. The lawmaker from Massachusetts said that the SEC had to make full use of all of the regulatory authority that it possesses in order to put an end to the scams that are perpetrated on American customers.
The failure of the big cryptocurrency exchange FTX in November of the previous year has also been under Warren’s scrutiny. This event sent tremors across the sector and prompted authorities to step up their efforts to tighten oversight.
She has advocated for the creator of the exchange, Sam Bankman-Fried, also known as “SBF,” to be held responsible to the highest possible degree under the law.
Warren said in the interview that unscrupulous crypto players are actively lobbying in Washington, emphasizing that the SEC has been loud and clear that cryptocurrencies should not be given a pass to violate existing securities regulations that safeguard investors and market integrity.
CFTC commissioner mirrors Warren’s thoughts
During a talk at Duke University on January 21, CFTC Commissioner Kristin Johnson advocated for more regulation of the cryptocurrency industry. Johnson said she is strongly urging CFTC Chair Rostin Behnam to swiftly launch a notice and comment process. This is due to Johnson’s efforts to bring crypto regulation within the authority of the Commodity Futures Trading Commission.
In order to fulfill our customer protection, market integrity, and market stability mandate, the commission should have the authority to engage in an appropriate level of due diligence.Kristin Johnson
Johnson also contacted Congress in an effort to expand the CFTC’s regulatory jurisdiction over virtual currency. In addition, she requested more government involvement and transparency on the financial stability of businesses contemplating a merger or acquisition.