US Democratic Senator Elizabeth Warren (Massachusetts) praises the country’s Securities and Exchange Commission (SEC) and Chairman Gary Gensler’s crackdown on the cryptocurrency industry. and called on lawmakers to give the SEC the resources and authority it needs to continue.
Warren said in an interview on January 25 with the American Economic Liberties Project, a group known for its anti-monopoly stance, that Gensler, who will lead the SEC from 2021, is a former president of Donald Trump. After regulators “allowed the explosion,” he said it had to “put the spirits back in the jar and force the crypto ecosystem to comply with regulations,” but it was off to a good start.
Warren, who has been a particularly strong critic of the climate change impacts of the crypto space, said the SEC is working to protect investors from crypto products, saying, “If a Bitcoin (BTC) exchange-traded fund hits the market, have been prevented,” he said. He also praised the SEC’s actions against illegal cryptocurrency promotion by Kim Kardashian and insider trading by officials of cryptocurrency exchange Coinbase.
“Most importantly, the SEC still appears to be active. That’s why we’re here,” Warren said.
Warren also doubled down on efforts by regulators to make improvements, with his investigation following the collapse of prominent crypto exchange FTX last November, which sent ripples through the industry. She is calling for FTX founder Sam Bankman-Fried to be held accountable “to the fullest extent of the law.”
“If the SEC needs to tighten regulation and use its tools to enforce rules, and if the SEC needs more agents, Congress will go full steam ahead in the crypto markets. We need to provide the necessary resources and new powers to do so,” Warren said. He also said all American regulators must work together to crack down on many aspects of the industry, including the negative environmental impact of mining.
She also has her sights set on the crypto lobby.
“Shady crypto players are lobbiing hard in Washington,” Warren said in an interview, arguing that crypto is “getting a permit” to evade securities laws that protect the integrity of investors and markets. It added that the SEC has stated “loudly and clearly” that it should not.
“This is the right approach,” she said.
｜Translation: coindesk JAPAN
｜Editing: Toshihiko Inoue
| Image: Senator Elizabeth Warren (Shutterstock)
｜Original: Elizabeth Warren Praises SEC Chief Gensler, Slams Crypto Lobby