The debate over crypto legislation in the United States is escalating.
Senator Elizabeth Warren of Massachusetts wants to impose harsh regulations on cryptocurrencies believing they pose a threat to U.S. national security.
According to Politico, although a Democrat, Warren is working with Republicans to build an “anti-crypto army.”
Senator Elizabeth Warren is building an "anti-crypto army"
In 2022 Warren asked the U.S. Treasury to be weary of cryptocurrency markets and to keep tabs on the developing industry.
Warren expressed her concerns about cryptocurrencies in a message to Treasury Secretary Janet Yellen and the Financial Stability Oversight Council, asking them to commit to a regulatory framework and investigations into potential threats to U.S. national security, climate, and traditional markets.
From Elizabeth Warren’s messages:
I am deeply concerned by the volatility of the cryptocurrency market and the inadequate regulatory environment in which crypto scams, fraud, theft, and evasion continue to run rampant and mom-and-pop investors’ savings have evaporated.
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To Warren, the crypto market employs “predatory tactics” to draw in new consumers. According to Warren, cryptocurrency companies commit fraud and there are few consumer protections for investors when things go wrong.
She also expressed concerns about how cryptocurrencies give criminals the ability to hide monetary transactions and evade sanctions or punishment using privacy blockchains.
With the SEC cracking down on stablecoins and retail staking services, causing Kraken to shut down their staking services for U.S. investors, more harsh sanctions and new restrictions are predicted for the crypto market.