Senator Elizabeth Warren Says Stablecoins Can Threaten The National Economy, How Come?

Elizabeth Warren says stablecoins will disrupt the nation's economy (Business Insider)

JAKARTA – One of the US senators, Elizabeth Warren revealed that stablecoins can threaten the country's economy and also pose risks to consumers. Warren thinks stable coins like USDT and USDC “support one of the least viable parts of the crypto world, DeFi (decentralized finance), where consumers are very unprotected from fraud.”

Reporting from Cryptopotato, this is not the first time she has branded the crypto industry as "shady" or something similar. In July, outraged Senators said that “shadow supercoders” were behind crypto, making it a threat to the US financial system. This latest statement was made by Warren at a session of the Senate Committee on Banking, Housing, and Urban Affairs on December 14.

“Stablecoins pose a risk to consumers & our economy. They sustain one of the shadiest parts of the crypto world, DeFi, where consumers are least protected from fraud. Our regulators need to get serious about pressing on before it's too late," Senator Warren wrote in a Dec. 14 Twitter post.

Stablecoins do threaten traditional financial systems as they were designed. The Federal Reserve controls the dollar, and it has plunged the economy into crisis with unprecedented printing of money that has resulted in inflation rates as high as 40 years.

At the same hearing, Senator Sherrod Brown joined Elizabeth Warren and labeled crypto as “magic money.” Senator Brown opened the trial outraged at stablecoins and their connection to this “new fantasy economy.” She added that they facilitate users staking money on volatile and sometimes fraudulent cryptocurrencies.

Just a week ago, a number of crypto CEOs and executives traveled to Capitol Hill to explain the role of stablecoins and what the industry is all about in an effort to quell these widespread concerns and statements.

These efforts seem to have gone unheeded in the light of the enthusiasm that emanates from these anti-crypto policymakers. The trial took place on the same day that Tether was sued with another lawsuit that CTO Paolo Ardoino branded “nonsense and copycat.”