Senator Elizabeth Warren recognizes crypto’s potential for the economy, but she also concedes to the fact that a series of safeguards must be implemented around these currencies.
While the Securities and Exchange Commission’s increased measures on the crypto market is a welcome move, Senator Warren said regulators must increase their vigilance towards cryptos.
In an interview with Bloomberg, the senator said the government and regulators should keep up with the rapid expansion of crypto. She said that stricter market regulation is needed to prevent cryptocurrencies from getting out of control.
Balancing act
Senator Warren is optimistic about cryptocurrencies’ capability to bring more democracy to the global financial system. But she said that financial gatekeepers must not be complacent and leave cryptos on their own.
Warren said that the biggest threat of crypto is not the crypto itself, but if it’s left unregulated by governments all over the world. There are big and clear benefits of crypto, and the governments’ job is not to let the “unpleasant” side of cryptocurrencies spill out on their financial system.
She even said that the worst-case scenario, if cryptocurrencies are left unregulated, is another big financial crash.
Upside and downsides
In the interview, Senator Warren said that one of the biggest benefits that cryptos can provide is that they can reach millions of people who are still unbanked and underbanked.
But these people, according to her, would be more prone to getting cheated if there aren’t any regulatory bodies overseeing the fast-growing market.
She also said that she doesn’t want taxpayers to pay again the price of a big financial crash, which cryptocurrencies can potentially ignite if they are left unchecked.
Image courtesy of Cointelegraph News/YouTube
