Senator Elizabeth Warren is labor in a sweeping cryptocurrency bill that would grant greater cryptocurrency regulatory authority to the Securities and Exchange Commission, according to sources close to her.
โAs Senator Warren has already said publicly, she is working on crypto legislation and believes that financial regulators, including the SEC, have broad existing authority to crack down on crypto fraud and illegal money laundering,โ he said. Alex Sarabia, a spokesman for Warren, in a statement. communicated to Semafor.
Warren's office is investigating cryptocurrency-related issues, including tax, regulation, weather and national security, according to Semafor details, which "could change."
Following the collapse of crypto exchange FTX, Senator demanded New regulations to govern the crypto space.
Among Warren's proposals were the following:
- Make sure that cryptocurrency brokers and exchanges meet certain regulatory requirements, such as providing audited financial statements and requiring capital requirements similar to those of banks.
- Secure customer deposits so they are never commingled with company assets and keep them separate so they cannot be used to finance other investments if a company goes bankrupt.
To address this, Warren recently urged the SEC and other federal regulators to fight crypto fraud more aggressively and called on Congress to provide more funding to law enforcement agencies and financial regulators to close regulatory loopholes.
It is worth noting that cryptocurrencies are difficult to regulate in the US due to the lack of federal regulatory authority. Bitcoin is regulated as a commodity by the Commodity Futures Trading Commission (CFTC), in the exchange-traded fund category by the Securities and Exchange Commission (SEC), and in the property category by the Revenue Service. Internal (IRS).
It is not the first time that Elizabeth Warren has worked on a bill to regulate cryptocurrencies. She inserted one in March to regulate cryptocurrency and sanction Russia simultaneously. In essence, the bill was meant to force blockchain companies to choose between the two countries and put economic pressure on Russia.
However, after that, Warren received criticism from cryptocurrency enthusiasts and non-cryptocurrency advocates alike.
