Elizabeth Warren led cryptocurrency bill in works, may give SEC most regulatory authority
Senator Elizabeth Warren work According to a source close to her, about a comprehensive cryptocurrency bill that would give the Securities and Exchange Commission most cryptocurrency regulatory powers.
“As Senator Warren has already publicly stated, she is working on cryptocurrency legislation and financial regulators, including the SEC, have broad existing powers to crack down on cryptocurrency fraud and illegal money laundering. We believe that,” Warren’s spokesperson Alex Sarabia said. Statement to Semafor.
Warren’s office is investigating crypto-related issues such as taxation, regulation, climate and national security, which are “subject to change,” according to Semaphore details.
Senator after the collapse of the cryptocurrency exchange FTX requested New regulations to govern the crypto space.
Warren’s suggestions include:
- Ensure brokers and cryptocurrency exchanges comply with specific regulatory requirements, such as providing audited financial statements and mandating bank-like capital requirements.
- Secure customer deposits so that they are never combined with the company’s assets and keep them segregated so that they cannot be used to finance other investments in the event of the company’s bankruptcy.
To address these, Warren recently urged The SEC and other federal regulators have called for a more aggressive fight against cryptocurrency fraud, urging Congress to provide more funding to law enforcement and financial regulators to close regulatory gaps.
Please note that it is difficult to regulate cryptocurrencies in the US as there are no federal regulators. As a commodity, Bitcoin is regulated by the Commodity Futures Trading Commission (CFTC), by the Securities and Exchange Commission (SEC) in the exchange traded fund category, and by the Internal Revenue Service (IRS) in the property category.
This is not the first time Elizabeth Warren has tackled a crypto regulation bill.she introduced One is to simultaneously regulate cryptocurrencies and sanction Russia in March. Essentially, the bill was meant to force blockchain companies to choose between the two countries, putting economic pressure on Russia.
But Warren has since come under fire from crypto enthusiasts and non-crypto advocates alike.
