The Crypto Industry Is Afraid Of The SEC, Said US Senator Elizabeth Warren, Is That True?

Senator Elizabeth Warren sanjung chair of SEC Gary Gensler. (Photo; Doc. Newsweek)

JAKARTA - The United States (US) Senator, Elizabeth Warren, recently called for banking regulators and financial authorities to cooperate with the US Securities and Exchange Commission (SEC) to combat crypto fraud.

In a speech on January 25, Warren stated that over the past 12 months, the crypto industry has seen giants such as Celsius and FTX fall under pressure from "frauds, frauds and errors in management." This condition prompted regulators to emphasize the importance of protecting investors from becoming victims.

The fall of these crypto companies has mainly affected retail investors and people from the public who do not have bank accounts, Warren said.

"Crypto fraud is a big problem, but it's a problem we can fix. The solution starts with the SEC."

Tanjung SEC Chairman Gary Gensler

According to Senator Elizabeth Warren, regulatory approaches to crypto regulation have varied under different leadership. During President Donald Trump's administration, regulators provided "green lights" for unregistered tokens of garbage and securities, rugby pull, Ponzi schemes, pump-and-dump schemes, money laundering, and sanctions avoidance.

However, with Gary Gensler as SEC leader, the regulator has made a good start by suing banks and public companies to take responsibility for the risk of storing cryptocurrencies.

This has prevented the launch of Bitcoin-traded funds that are particularly vulnerable to market fraud and manipulation. In addition, the SEC has also tightened its grip on providing crypto lending services and taking law enforcement measures in the past year.

"... the industry is afraid of a strong SEC, and that's why they spend millions of dollars every year lobbying to escape SEC surveillance," Warren added.

According to him, crypto players like to "run faster and beat regulators." Even so, he is currently focusing on honest and fair financial market issues. He also made statements regarding the SEC's application of cryptocurrency laws. Warren considered it the right move.

Furthermore, he again praised Gensler by saying that the SEC chairman proved to be "the right leader to complete the job." The US senator suggested that the SEC could more use its tools and forces to enforce rules and control crypto scams.

SEC Tuai Criticism

Although Warren praised Gary Gensler's leadership as the SEC leader, many have cast doubt on his abilities. In December 2022, New York Senator feasibility Torres demanded the US Government's Office of Accountability to investigate the SEC's failure to catch alleged FTX fraud before its collapse.

Launching Cryptoslate, the SEC and Gensler also came under fire from Minnesota Senator Tom Emmer, who stated that Gensler had to account for the "regulation failure" he did to Congress. Emmer even accused Gensler of fraud in FTX before its collapse.

Warren stated that Congress should ensure that the SEC and other regulators have the resources and authorities needed to regulate "any corner of the crypto market."

He also added that environmental regulators such as the Department of Energy and the Environmental Protection Agency should force crypto miners to disclose the use of their energy and environmental impacts.

In addition, he stated that regulators need to increase and protect this sector from fraud as banks like Silvergate have opened up the banking sector to the risk of cryptocurrencies.

"With strong rules and law enforcement from strict regulators, we can give the crypto industry the opportunity to prove whether they can fulfill their promises..." Elizabeth Warren said.