In a letter addressed to the chairman of the U.S. Securities and Exchange Commission (SEC), Senator Elizabeth Warren has warned of the risks associated with cryptocurrencies. The crypto skeptic senator demanded answers from the SEC on cryptocurrency regulations come July 28.
While demand for cryptocurrencies and the use of cryptocurrency exchanges have sky-rocketed, the lack of common-sense regulations has left ordinary investors at the mercy of manipulators and fraudsters.
Warren, who is part of the United States Senate Banking Committee, is concerned about the risks consumers and investors face in the $1.3 trillion market. She opined that Congress may need to act to ensure that the SEC has proper authority to close existing regulatory gaps.
The Senator drew attention to Binance, which is currently facing regulatory blocks in the U.K. She noted although Binance operates worldwide, it has no base of operations, thereby taking advantage of jurisdictional gaps.
This is not the first time Senator Warren has aired her sentiments about crypto-related issues. In June, she criticized the use of cryptocurrencies for illicit financing.
The SEC may be granted additional authority to close regulatory gaps if its response to the deadline sits well with Congress.