Senator Elizabeth Warren recently gave her opinion on the current state of affairs in the cryptocurrency space, following the bankruptcy of FTX. She explained that the cryptocurrency industry follows the same pattern that led to previous financial crises. From her point of view,Encryption is no exceptionAnd his supporters want you to believe him. Here is what the senator advises to save the global economy from disaster.
Regulators must be tough on cases of cryptocurrency fraud
On November 22, the Wall Street Journal reported editorial By US Senator Elizabeth Warren on cryptocurrency. This was titled:Regulate cryptocurrency or the economy will collapseOn the same day, Senator an act Twitter post with a link to his editorial. She said in her tweet:The collapse of FTX should be a wake-up call“.
The senator urged the Securities and Exchange Commission, the Justice Department and the US Treasury Department to “Use their broad powers to crack down on cryptocurrency fraudShe added thatCongress needs to plug the loopholes and shore up the financial cops with more resources“.
Moreover, Warren explained in his article that the spectacular crash of the FTX stock exchange was shocking, but it was to be expected. In fact, according to the senator, the crypto sector follows “Known path of financial innovations“.
I liken cryptocurrency to subprime mortgages that include “It started with big prizes“to the end”by catastrophic lossesFor her, encryption is just deja vu It will only destroy the economy.
The crypto community is championing the new industry
Some Twitter users agreed with Sen. Elizabeth Warren. In particular, they argued that cryptography is merely “powder in the eyesSome pointed out that the senator always tried to alert the public to the risks involved in this sector.
however, Several commentators disagreed In Warren’s opinion. The crypto community has made it clear that regulators are not aware of what the industry stands for. She lamented that they instill fear in publications of this kind.
The Senator Warren has often criticized the crypto sector, in particular saying that DeFi is dangerous. For her, the FTX bankruptcy should alert regulators who must now get active to enforce the laws on the industry.
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Far from dampening my enthusiasm, an unsuccessful investment in cryptocurrency in 2017 only fueled my enthusiasm. So I resolved to study and understand the blockchain and its many uses and pass on my pen information related to this ecosystem.