US Senator Warren Sees Advantages of Cryptocurrency however Warns ‘a Run on Crypto’ Could Want Federal Bailout – Regulation Bitcoin Information
US Senator Elizabeth Warren, a longtime Bitcoin skeptic, has shared her opinion on the benefits of cryptocurrencies. While noting that “the greatest benefit of cryptocurrency could be expanding or democratizing access to the financial system,” she cautioned that the crypto industry may need a federal rescue if something goes wrong, such as “a run on crypto.”
Senator Elizabeth Warren discusses the biggest advantages and disadvantages of cryptocurrencies
Senator Elizabeth Warren was asked in an interview with Bloomberg last week what she thinks US cryptocurrency regulation should look like. “If the people out there want to act, there has to be a cop,” she began. “Because if there is no cop in the tact in any market, then it is the small dealers who are cheated, and that is what always worries me.”
The Massachusetts senator continued, “This is about establishing some ground rules so that anyone can trade with some basic confidence that the greatest kinds of scams have a cop whistle and stop the whistle. ”
When asked what she believed to be the biggest advantages and disadvantages of cryptocurrencies, Warren replied:
The biggest benefit of cryptocurrency could be the expansion or democratization of access to the financial system.
“Right now we have tens of millions of people in the United States who either have no bank account or no bank account. “They have to pay money to pay their utility bills or to pay the rent, and that costs these people a lot.”
The Senator stated, “It is possible that moving to a digital currency system, or should I say expand to a digital currency system, could bring in more people and there are many different options that could be designed.”
On the downside of cryptocurrency, Senator Warren said:
The downside, of course, as long as it is an unregulated system, you may be pulling in more people so they can be scammed and that is not what we want.
She warned that the bigger the cryptocurrency market gets and the more it stays outside the financial system, the more we could face another financial crash similar to 2008. She warned, “If something goes wrong there is a run on” crypto, there is a problem elsewhere in the economy, I don’t want the US taxpayer to be the one called to support this. “
Lots of people took to Twitter in response to Warren’s comment on a run on crypto. Some stated that she still thinks like a banker and crypto is not like the stock market where bankers go to the government for a bailout after a crash. Edge CEO Paul Puey said:
You can’t run into crypto. You can’t save crypto. You do not have to. This is the “why” of crypto.
Senator Warren has long been a bitcoin skeptic. In May, she beat up cryptocurrencies, citing environmental pollution and investor protection. She also agreed with Treasury Secretary Janet Yellen that cryptocurrencies are mainly used for illegal funding.
Recently, Senator Warren has been pushing for regulation of the crypto sector. She has urged Yellen to quickly adopt a policy to mitigate the risks of crypto. She also urged the chairman of the US Securities and Exchange Commission, Gary Gensler, to urgently develop a policy on crypto and the SEC to use its “full authority” to regulate cryptocurrency trading.
What do you think of Senator Elizabeth Warren’s comments? Let us know in the comment section below.
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