US senator Elizabeth Warren, known as a formidable crypto opponent, believes that the industry fears strong regulation from SEC.
Senator Elizabeth Warren of Massachusetts, while participating in a YouTube live stream, spoke strongly against the cryptocurrency sector. She urged the Security and Exchanges Commission (SEC) to put more effort into its fight against crypto fraud because most crypto industry players are “scared of a strong SEC.”
According to Warren, the SEC is just getting started in its efforts to rid the economies of different crypto scam promoters and trading merchants with defrauding tendencies.
SEC is not only a crypto checkmating agency in the United States. The Federal Deposit Insurance Corporation (FDIC), the Commodity Futures Trading Commission (CFTC), the Department of Justice (DOJ), and the Federal Trade Commission (FTC) are some of the other US agencies on the trail of crypto-centric setups.
Some agencies and lawyers preferred having to deal with the CFTC than with SEC, but senator Warren believes that the Gensler-led SEC is the most suited for the job.
Senator Warren further justified her position by saying that the SEC has always been loud and clear in its opposition to crypto and is the most suited because it has the right approach, rules, and leadership.
While talking about the environment, Warren called on designated environmental agencies to go after crypto miners polluting the environment and driving energy costs.
According to Senator Warren, the proliferation of different junk tokens, rug pulls, unregistered securities, Ponzi schemes, money laundering, and sanctions evasion became more pronounced in 2017 due to the weak dispositions of regulators under the then-Trump administration.
Warren also criticized “crypto-friendly” banks like Silvergate for opening the banking system to the greater risk of crypto collapse. She said banks are meant to insulate the banking system and its users from the pangs of crypto fraud because they have all the tools to achieve that.
Recall that Senator Warren proposed a strict crypto bill to empower the SEC. It is meant to place the asset class under the jurisdiction of the US SEC.
In December, democrat senator Jon Tester, a member of the Senate Banking Committee, asserted that he sees no reason why crypto should exist; he, however, called for a full-scale regulation of cryptocurrencies.