Democratic Senator, Elizabeth Warren urged policymakers to pursue crypto regulation and declared that cryptocurrencies are an “environmental disaster” in a hearing held by the Senate’s Banking Committee.
Warren claimed that present crypto markets are reminiscent of the “Wild West” and that currencies like Bitcoin are “not a good way to buy and sell things and not a good investment.”
Government Needs to Consider Crypto Regulation- Elizabeth Warren
Warren is a longstanding Wall Street critic, who believes that cryptocurrencies have failed to enhance the lives of everyday Americans, and instead have generated myriad issues in need of immediate government response. In Warren’s opinion, crypto has created opportunities for criminals to scam investors, while the climate crisis continues to worsen. She states:
“The threats posed by crypto show that Congress and federal regulators can’t continue to hide out, hoping that crypto will go away. It won’t. It’s time to confront these issues head-on.”
Digital Dollar to Help Poorer Americans
Warren also showed support for a digital currency backed by the Federal Reserve. She believes a well-designed digital dollar has great potential and it could uplift America’s poor while streamlining the country’s financial system.
Meanwhile, republicans reacted skeptically towards a Fed-approved virtual currency, questioning the product’s necessity and its implications for traditional banking. Pennsylvania’s Republican Senator, Pat Toomey said, “We don’t need a state-sponsored bank interfering with this successful free-enterprise system.” He proposed that private digital currencies should be allowed to flourish.
The ongoing debate in Washington is one of the most direct efforts so far to explore the prospects and consequences of a Fed-backed digital dollar. Fed Chair, Jerome Powell has clarified that the central bank will not be moving ahead with the project in the absence of congressional support.
The US is seeking to tighten its grip on crypto transactions at the moment. In April, the Internal Revenue Service (IRS) gained a federal court’s permission to gather data on cryptocurrency traders suspected of violating tax laws.
American investors are capitalizing big-time on cryptocurrencies. A recent report revealed that Bitcoin stakeholders in the country made an estimated $4.1 million in profits.