Representatives of the Democratic Party on the US Senate Banking Committee criticized the loyalty of Republicans to digital assets and proposed increased oversight of cryptocurrencies, including stablecoins.
Democratic Senator, Banking Committee Chairman Sherrod Brown declaredthat his colleagues from the US Republican Party do not take seriously the risks associated with crypto assets.
“Their entire congregation believes in cryptocurrencies and they seem indifferent to the risk that digital assets represent,” Brown said.
The head of the banking committee compared the situation in the cryptocurrency market with the over-the-counter market, which played a significant role in the 2008 crisis:
“Unlike the Republicans, we recognize that there is a real risk to the system when billionaires are created from scratch. And if we ask where the money comes from, all these billions of dollars… They won’t answer.”
Brown called on all Democrats to unite with regulators in creating effective and safe laws to regulate cryptocurrencies:
“I know that because of the cryptocurrency lobby here, we cannot pass any law. It doesn’t mean we don’t try. But we can work with the Fed, the SEC, the FDIC, the CFTC, the CAA and the OCC.”
He was backed by Democrat Catherine Cortez Masto, warning that the committee is now dealing with high-risk assets:
“The crypto market is now bigger than the subprime mortgage market that triggered the global financial crisis.”
Well-known cryptocurrency critic and Massachusetts Democrat Elizabeth Warren spoke out about the security of stablecoins.
“We are dealing with the risks that stablecoins pose to consumers and to the economy as a whole. If companies do not properly control the situation and believe that they have assets that they really do not, then this is a risk to the entire financial system, ”Warren emphasized.
In March, Democrat Ron Wyden, chairman of the US Senate Finance Committee, urged the US authorities not to tighten regulation of the cryptocurrency industry.
Source: Bits
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