US Senator Warren Sees Benefits Of Cryptocurrency But Warns ‘Race Against Crypto’ May Require Federal Bailout – Bitcoin Regulation News

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Long-time bitcoin skeptic US Senator Elizabeth Warren shared her take on the benefits of cryptocurrencies. While noting that “the biggest benefit of cryptocurrency could be the expansion or democratization of access to the financial system,” she warned that the crypto industry may need a federal bailout in problem cases, such as “a race against crypto”.

Senator Elizabeth Warren discusses the biggest pros and cons of cryptocurrencies

Senator Elizabeth Warren was asked what she thought U.S. cryptocurrency regulations should look like in an interview with Bloomberg last week. “If people want to be there to trade, there has to be a cop on the beat,” she began. “Because when there is no cop on the spot in a market, it’s the small traders who get ripped off, and that’s what always worries me.”

The Massachusetts senator continued, “It’s about putting ground rules in place so that everyone can trade with some basic confidence that the biggest types of scams will have a cop on the beat to whistle down and put an end to it. “

Responding to a specific question about what she believed to be the biggest plus and minus of cryptocurrencies, Warren replied:

The biggest benefit of cryptocurrency could be the expansion or democratization of access to the financial system.

“Right now in the United States we have tens of millions of people who are unbanked or underbanked, which means they have to go to cashiers to pay 3% of their salary just to get their money, ”she described. “They have to pay money to make a payment on their utilities or to pay the rent and it costs these people a lot.”

The senator detailed: “It is possible that the move to a digital currency system, or I should say the expansion to a digital currency system, will attract more people and there are many different ways of thinking.”

As for the downsides of cryptocurrency, Senator Warren said:

The downside, of course, is that as long as it’s an unregulated system, you might attract more people so they can get cheated and that’s not what we want.

She warned that the more the cryptocurrency market grows and the longer it stays out of the financial system, the more we could face another financial crash similar to the one in 2008. She cautioned, “If something goes wrong no, there’s a crypto race, there’s a problem elsewhere in the economy, I don’t want the US taxpayer to be the one called upon to support this.

Many people took to Twitter to respond to Warren’s comment about a crypto run. Some have explained that she still thinks like a banker and that crypto is not like the stock market where bankers look to the government for a bailout after a crash. Edge CEO Paul Puey said:

You cannot run on crypto. You cannot bail out the crypto. You don’t need it. This is the “why” of crypto.

Senator Warren has long been a bitcoin skeptic. In May, she criticized cryptocurrencies citing environmental impact and investor protection. She also agreed with Treasury Secretary Janet Yellen that cryptocurrencies are primarily used in illicit financing.

Recently, Senator Warren has pushed for regulation of the crypto industry. She urged Yellen to quickly adopt a policy to mitigate crypto risks. She also called on the chairman of the United States Securities and Exchange Commission (SEC), Gary Gensler, to urgently propose a policy on crypto and for the SEC to use its “full authority” to regulate the trading of coins. cryptocurrencies.

What do you think of Senator Elizabeth Warren’s comments? Let us know in the comments section below.

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