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- In an interview, Warren openly praised SEC for its efforts in crypto regulations.
- As crypto is about to come under regulations, lobbyists are trying to evade it.
- Speaking harshly against crypto, lobbyists hinted towards stricter rules.
Lately, there have been swift attempts to regulate crypto worldwide. United States Senator Elizabeth Warren praised the SEC and chair Gary Gensler for the steps to curb the crypto industry and urged lawmakers to provide the runway to the country’s financial watchdog to keep this wheel turning.
Praising Securities and Exchange Commission (SEC)
Upon taking charge at SEC in 2021, Gary Gensler had a herculean task at hand, “to put the genie back in the bottle and bring the crypto ecosystem into regulatory compliance.” It should be noted that the industry was allowed to explode during Trump’s tenure. Said Warren on Wednesday during an interview with the American Economic Liberties Project.
Further, in an interview, Warren said that the SEC prevented “bitcoin exchange-traded funds from hitting the market” to protect investors. At the same time, she has been a stern critic of the industry, particularly the ill effects of mining on the environment. Also, praising the watchdog for their action against celebrities like Kim Kardashian, in turn setting up an example for others, also when Coinbase (COIN) was held for insider trading.
Once SEC rules were applied, it would be a paradigm shift for the industry; companies spend millions each year lobbying their efforts to evade the crosshairs.
Warren vs. FTX
Elizabeth had been watching the FTX saga closely, the black swan event that shook the industry by its roots. The event pushed the regulators to amp up their efforts to improve observation. She also urged that Sam Bankman-Fried, FTX founder and ex-CEO, must be held accountable to the “fullest extent of the law.”
There are rumors that Gary Gensler met with Sam Bankman-Fried on more than one occasion. If media reports were to be believed, one in three United States lawmakers received considerable donations from the former crypto white knight before its collapse. This exercise was more in the limelight during the US midterm elections and the possible timeline of the crypto bill called the Responsible Financial Innovation Act.
Valuable Suggestions
Elizabeth has suggested that the SEC must buckle up, and utilize its tools to the fullest to enforce the rules. The nation’s watchdog would require more cops or, say, more sets of prying eyes. Lawmakers must also work around and provide the commission with the facilities and environment to work at full strength.
All the regulating authorities of the United States should work together to police different aspects of the industry. This would include the industry’s impact on the environment through mining activities.
Taking a stand against crypto lobbyists, Warren said in the interview that many gray players are trying to influence the house in Washington. At the same time, the SEC has always been clear on the point that the crypto shouldn’t “get a pass” to avoid any of the existing securities laws made solely to protect the market’s integrity and the investors.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
