In a recent letter, United States Senator Elizabeth Warren (D-MA) called Treasury Secretary Janet Yellen for more crypto regulations “a coordinated and unified regulatory approach to minimize the rising dangers that cryptocurrencies represent to the financial system.”

Elizabeth Warren Asks Yellen For More Crypto Regulations

Warren went on to say:

“In the absence of adequate regulation in the United States, I have grown more worried about the risks that cryptocurrencies represent to investors, consumers, and the environment.  However, if the demand for cryptocurrencies grows and these assets become more integrated into our financial system, the Council must consider whether these developments go beyond investor and consumer protection and point to larger systemic vulnerabilities that might jeopardize financial stability.”

The FSOC was established in 2010 with the adoption of the Dodd-Frank financial system regulating bill, which was enacted in the aftermath of the late-2000s financial crisis. 

Members of the group include, in addition to the Treasury Secretary, the chairman of the Federal Reserve, the Comptroller of the Currency, and the leaders of the SEC and CFTC, among other agencies.

The letter contains some of Warren’s remarks on the issue of cryptocurrencies to date. She blasted Bitcoin’s network energy usage last month and advocated for more regulatory supervision.

According to Senator Elizabeth Warren, there is a need to address the systemic concerns posed by the rising cryptocurrency sector. 

She urged the Financial Services Oversight Committee (FSOC) to investigate the matter in a letter. She stated that they should assess if it is reasonable to contain the dangers.

Warren Wrote Similar Letter To SEC Chair Gary Gensler In Early July

The American legislator cautions that if no regulatory framework is formed, there might be severe consequences.

Warren wrote a similar letter to Securities and Exchange Commission Chair Gary Gensler in early July, pushing the dreaded regulatory body to eliminate current regulatory loopholes in the crypto sector and setting a June 28 deadline.

As previously reported, the senator infuriated the cryptocurrency community in early June when he called Bitcoin a ‘lousy’ investment and an environmental ‘disaster.’ After Warren’s anti-crypto rant, Twitter CEO Jack Dorsey unfollowed her.