Crypto Industry Leaders Afraid of a Strong SEC Senator Warren

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US Senator and crypto skeptic Elizabeth Warren wants the Securities Exchange Commission (SEC) to double down on its crypto enforcement efforts, pointing out that the cryptocurrency industry is scared of what’s next.

Warrens’ comments came during an interview with the American Economic Liberties Projects on Jan. 25.

The senator felt that since Gensler was sworn in as SEC Chairman in April 2021, the Commission has made a good start in addressing some of the problems created by former SEC executives during the Trump administration.

Senator Elizabeth Warren wants Congress to deploy more authority and resources to help the SEC’s crackdown on cryptocurrency industry players. Source: Reuters

Warren claimed that the previous administration of the SEC essentially gave the go-ahead to open up a cryptocurrency market full of junk tokens, unregistered securities, rug draws, Ponzi schemes, pumps and dumps, money laundering and evasion of sanctions.

But it’s now being cleaned up under Gensler, which is spooking industry leaders, according to Warren:

It seems that the commission continues to gain momentum. That’s why the industry is afraid of a strong SEC, and that’s why it spends millions of dollars each year lobbying to escape SEC scrutiny.

The crypto critic also pointed the finger at crypto lending companies, celebrity promoters and insider traders who she said misled and deceived retail investors.

But Warren didn’t stop there.

The Massachusetts politician said the SEC must use the full force of its regulatory powers to reign in fraud inflicted on American consumers.

The SEC should step up its efforts and use its tools to enforce the rules, and where the SEC needs more cops on the spot, then Congress must step up the resources and new authorities needed to ensure that the SEC can doing its job at full strength in all corners of the crypto market.

The senator also called on U.S. banking and environmental regulators to impose more accountability measures against some of the biggest players in the cryptocurrency industry.

1:30 p.m.: We’ll kick off an event with @RealBankReform and @SenWarren to examine the rise and fall of the crypto industry – and what it means for policymakers.

RSVP here. You won’t want to miss it.https://t.co/nj8xsJbPur pic.twitter.com/A1saROKeZU

American Economic Freedoms Project (@econliberties) January 25, 2023

The commission has been loud and clear that crypto doesn’t get a pass for long-standing security laws that protect investors and ensure the integrity of our financial markets, she added.

Related: Congress May Be Ungovernable, But US Could See Crypto Legislation In 2023

However, not all US senators seem to have put Genslers SEC on the same pedestal.

New York Senator Ritchie Torres on Dec. 6 asked the US Government Accountability Office to conduct an investigation into the SEC’s failure to investigate and expose alleged FTX fraud months before the crypto exchange collapsed -currency :

You can’t have it both ways, asserting your authority while avoiding accountability.

A few days later, on December 10, Minnesota Senator Tom Emmer criticized the SEC and Gensler for its flawed efforts to collect cryptographic information following the FTX collapse, saying he should have to explain the cost of its regulatory failures in Congress.

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