Senator Elizabeth Warren (D-Mass.) has warned that the continued volatility within the cryptocurrency house will persist until there are more durable rules in place to guard traders.
What Occurred: In an occasion hosted by the American Financial Liberties Mission referred to as “Confronting the Crypto Challenge: Learning From a Meltdown,” Warren mentioned, “for all their talk of innovation and financial inclusion, crypto industry giants — from FTX to Celsius to Voyager — are collapsing under the weight of their own fraud, deceit and gross mismanagement.”
“And when they sink, they take down a lot of honest investors down with them,” she added.
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Warren took a tough stance on crypto fraud in her keynote handle on Wednesday, calling on regulators, such because the Securities and Change Fee and banking authorities, to take “meaningful consequences” for dangerous actors, she mentioned.
“Crypto fraud is a big problem, but it is one that we can fix and the solution starts with the SEC,” said Warren in her keynote. “The SEC has a long history of fighting exactly the battles that we now face.”
She emphasized that tougher regulators would give the industry a chance to show that it can innovate without risking the financial security of investors, or being used for money laundering by drug traffickers and terrorists.
“No financial industry should get to write its own playbook, you either comply with the law or you face tough consequences for violating it. Crypto is no different,” she noted.
This comes at a time when Bitcoin BTC/USD is rallying over $23,000, up 40% since final 12 months.
Disclosure: Benzinga CEO Jason Raznick is a member of the unsecured creditor committee in the Voyager Digital bankruptcy case.
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