Massachusetts Senator Elizabeth Warren has addressed regulators criticizing cryptoassets and the industry built around cryptocurrency applications.
In a series of public letters, Senator Elizabeth Warren began a kind of dialogue with the head of the Securities and Exchange Commission, Gary Gensler, and with Treasury Secretary Janet Yellen.
In July, Warren wrote to Yellen urging her for “a coordinated and consistent regulatory strategy to mitigate the growing risks that cryptocurrencies pose to the financial system.” In the letter, she noted that “some” cryptocurrencies are very volatile and their unpredictable rise or fall could cause problems with financial stability, as well as liquidity risk that some banks face.
Also Warren being ardent
critic cryptoassets and related services, promotes the idea of ”a ban in the United States of keeping cash deposits that provide stablecoins.” In her opinion, such a measure can effectively stop the market boom and reduce their popularity.
Warren expresses extreme concern that companies like BlockFi are part of a new generation of institutions that look like banks but are built on cryptocurrencies.
“Crypto finance is a new shadow bank. It provides many of the same services, but without the consumer protection or financial stability that support the traditional system. It’s like calling straw gold, ”Warren said.
In the understanding of Elizabeth Warren, the definition of “shadow bank” refers to a non-bank financial institution that illegally provides the same services, but outside the scope of banking regulation.
In spite of
intent attention to BlockFi from regulators and business closures in a number of US states, in general, the company’s experience has become a reference point for many followers and new startups in the field of cryptocurrency lending.

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