US Senator and crypto skeptic Elizabeth Warren issued another warning about growing risks for consumers and financial markets due to the development of “highly opaque and volatile” digital assets, writes Reuters.
She outlined her concerns in a letter to the chairman of the US Securities and Exchange Commission (SEC) Gary Gensler. The former presidential candidate said that by July 28, she needs a report on the powers that the SEC has to protect consumers who invest and trade cryptocurrencies, as well as on further actions by Congress in this direction.
“While the demand for cryptocurrencies and the use of cryptocurrency exchanges have skyrocketed, the lack of common sense requirements has left ordinary investors helpless in the face of manipulators and scammers,” writes the chairman of the Senate Economic Policy Committee. “These regulatory gaps threaten consumers and investors and undermine the security of our financial markets. The SEC must use its full powers to respond to these risks, and Congress must get involved to close the regulatory gap. ”
Gensler, who took over as chairman of the SEC in April, had previously spoken about the need to strengthen investor protection in the cryptocurrency market, but had not proposed new rules until that time.
Warren notes that cryptocurrency platforms do not use the client protection mechanisms that are used in the traditional market. Senator asks Gensler to explain exactly how cryptocurrency exchanges can hinder the SEC’s mission to create a “fair, orderly and efficient market”, as well as indicate whether investors need additional protection and whether it is necessary to involve regulators from other countries.