US Senator Warren urges the SEC to use “full authority” to regulate cryptocurrency trading – regulation Bitcoin News

US Senator Elizabeth Warren has warned of the growing risks of cryptocurrency trading. She recently called on the Securities and Exchange Commission to “use its full authority to address these risks,” adding that “Congress must also be strengthened to address these regulatory loopholes.”

US Senator Warren urges SEC to step up crypto oversight

U.S. Senator Elizabeth Warren, Chair of the Economic Policy Subcommittee of the Senate Banking Committee, warned on Thursday of the growing risks in the cryptocurrency market. It also blasted the SEC for lack of oversight over crypto regulation.

“While the demand for cryptocurrencies and the use of cryptocurrency exchanges have skyrocketed, the lack of sensible regulations has left ordinary investors at the mercy of manipulators and scammers,” the senator was quoted as saying by Reuters. She stated:

These regulatory loopholes put consumers and investors at risk and undermine the security of our financial markets. The SEC must use its full authority to address these risks, and Congress must fill these regulatory loopholes as well.

Senator Warren also sent a letter to SEC chairman Gary Gensler on Wednesday expressing concerns about the risks in the crypto market. She stressed that cryptocurrency trading platforms do not have the same basic protections as traditional exchanges. The senator cited data from the Federal Trade Commission (FTC) showing that nearly 7,000 people reported a total of $ 80 million in losses from cryptocurrency fraud in the six months ended March.

Gensler, the MIT professor who taught courses on crypto and blockchain, was confirmed as the new SEC chair in May. Has previously said that the exchange of cryptocurrencies needs more regulation but has yet to propose new rules. “This is a fairly volatile, one could say very volatile, asset class and the investing public would benefit from more investor protection on the crypto exchanges,” he said in May.

Warren asked Gensler to outline how cryptocurrency exchanges could undermine the SEC’s mission, whether additional investor protection was needed, and whether international regulatory coordination was needed. She emphasized:

The lack of regulation for basic investor protection is unsustainable.

Senator Warren told Gensler that she needed answers from him by July 28 on the authority of the SEC to protect consumers who invest and trade in cryptocurrencies and to determine what future Congress action would be required.

What do you think of Senator Elizabeth Warren’s action regarding crypto regulation? Let us know in the comment section below.

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