Monday, 15 April 2024

Crypto News

Crypto industry leaders ‘scared of a strong SEC’ — Senator Warren

Crypto industry leaders ‘scared of a strong SEC’ — Senator Warren

United States Senator and crypto skeptic Elizabeth Warren wants the Securities Exchange Commission (SEC) to “double down” on its crypto enforcement efforts, highlighting that the cryptocurrency industry is running “scared” for what’s to come next.

Warren’s comments came from an interview with American Economic Liberties Projects on Jan. 25.

The Senator opined that since Gensler was sworn in as SEC Chairman in April, 2021, the Commission “has made a good start” on fixing some of the problems created by the former SEC leaders under the Trump Administration.

Senator Elizabeth Warren wants Congress to deploy more authorities and resources to help the SEC crackdown on the cryptocurrency industry participants. Source: Reuters.

Warren claimed that the previous SEC administration “essentially gave the green light” to open up a cryptocurrency market “full of junk tokens, unregistered securities, rug pulls, ponzi schemes, pump and dumps, money launderings and sanctions evasions.”

But that’s now being cleaned up under Gensler’s leadership, which has industry leaders scared, said Warren:

“It appears that the Commission is still ramping up. That is why the industry is scared of a strong SEC, and that’s why it is spending millions of dollars each year lobbying to escape SEC oversight.”

The crypto skeptic senator also pointed the finger at crypto lending companies, celebrity promoters and inside traders who have allegedly misled or deceived retail investors.

But Warren didn’t stop there.

The Massachusetts representative said the SEC needs to “use the full force of its regulatory powers” in order to “reign in the frauds inflicted on American consumers.”

“The SEC should double down and use its tools to enforce the rules, and where the SEC needs more cops on the beat, then Congress needs to step up with the resources and the new authorities that are needed to ensure the SEC can do its work at full strength in every corner of the crypto market.”

The Senator also called on U.S. regulators in the banking and environment sectors to impose more accountability measures against some of the bigger players in the cryptocurrency industry.

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