U.S. While noting that “The biggest upside to cryptocurrency could be expansion or democratization of access to the financial system,” she warned that the crypto industry may need federal bailout if something goes wrong, such as “a run on crypto.”

Senator Elizabeth Warren Discusses the Biggest Upside and Downside to Cryptocurrencies

Senator Elizabeth Warren was interviewed last week by Bloomberg about her views on U.S. cryptocurrency regulation. She stated, “If people are going out there trading it,” “Because if there isn’t a cop on any market beat, then it’s the small traders that get cheated and that’s what always worries .”

The senator from Massachusetts said: “This is about putting in some basic rules so that anyone can trade without just some basic confidence that even the most serious scams will be stopped .”

Warren responded to a question about the greatest upside and disadvantage of cryptocurrencies.

The biggest upside to cryptocurrency could be expansion or democratization of access to the financial system.

” “Right now in the United States we have tens to millions of people who either are unbanked nor underbanked. This means that they have to go check cashers to pay just 3% of their paycheck to get their cash,” she explained. They have to pay money to pay their rent or utilities bills .

The senator explained: “It’s possible that moving to digital currency, or expanding to digital currency system could bring in more people, and there are many ways that could be .”

designed.”

Senator Warren stated that cryptocurrency has a downside.

The downside, of course, is so long as it’s an unregulated system, you might be pulling more people in so that they can get cheated and that’s not what we want.

She warned that the bigger the cryptocurrency market gets, and the more it stays outside of the financial system, the more we could be facing another financial crash similar to the one in 2008. She warned: “If there’s an economic problem, or a run on crypto, the U.S. taxpayer should not be called upon to support this up

Many people responded to Warren’s comment on a crypto run by taking to Twitter. Some said that Warren is still thinking like a banker, and that crypto isn’t like the stock market, where banks go to the government to get a bailout. Paul Puey, Edge CEO, stated:

You can’t have a run on crypto. Cryptocurrency cannot be rescued. It is not necessary. This is the “why” of crypto.

Senator Warren is a long-time bitcoin skeptic. In May, she bashed cryptocurrencies citing environmental impact and investor protection. Janet Yellen, Treasury Secretary, also agreed that cryptocurrencies are mainly used for illicit financing.

Senator Warren has been pushing for regulation of crypto-related activities. She has urged Yellen to quickly adopt a policy to mitigate crypto’s risks. She also asked the chairman of the U.S. Securities and Exchange Commission (SEC), Gary Gensler, to urgently come up with a policy on crypto and for the SEC to use its “full authority” to regulate cryptocurrency trading.

What do you think about the comments by Senator Elizabeth Warren? Comment below.

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