US Senator Elizabeth Warren continued her criticism of cryptocurrencies and drew the attention of Treasury Secretary Janet Yellen to possible threats to the US financial system.
At a hearing at the Senate Banking Committee on July 27 titled “Cryptocurrencies: What Are They For?” Elizabeth Warren continued her criticism of digital assets. She argues that while the relatively small $ 1.5 trillion cryptocurrency market poses a very serious threat to the colossal $ 25 trillion US banking system. “All warning signs are flashing,” Warren said of the cryptocurrency market.
“Hype, inconsistency, wild claims that turn out to be false. As the cryptocurrency market grows, the risks to our financial stability and our economy grow. ”
She goes on to argue that cryptoassets are not as decentralized as they seem, and the system is controlled by large companies and mining pools.
“Instead of keeping our financial system and control of the largest banks, cryptocurrency is leaving it to the mercy of fate to some dark, faceless group of supercoders and miners.”
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letter to Treasury Secretary Janet Yellen, Warren explicitly called for stricter regulation of the cryptocurrency market, citing risks associated with stablecoins, DeFi protocols, etc.
“The longer the United States drags on with the introduction of regulatory measures for these assets, the more likely they will become so interconnected with our financial system that there could be serious consequences if this market is in crisis,” – wrote the senator.
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