The very last minute release of a nine-page report by the U.S. Government’s “Committee to Defend the US Financial System” raises the stakes in a long-running war between the world’s biggest banks and the crypto community. The report, issued last Wednesday, February 27, 2017, accuses Bitcoin of being “a medium for illicit transactions, including drug trade, prostitution, and other illegal activities.” A few days later, Senator Elizabeth Warren (D-Massachusetts) added her voice to the pot calling for Bitcoin to be outlawed as a “digital ponzi scheme” that enables criminals to “shield their misbehavior behind layers and layers of encryption.”
The fight between Warren and crypto may be this year’s most anticipated event, but that doesn’t mean it’s going to be easy. As the senator’s campaign continues to draw more attention to her stance on digital currencies, the crypto community is also weighing in. And it’s not just Warren’s stance that is being criticized—the people of Twitter are also weighing in, with some arguing that Warren’s portrayal of the cryptocurrency movement as a criminal enterprise is unfair.
Elizabeth Warren, a senator for the Commonwealth of Massachusetts, has announced that she will be running for the Democratic nomination for President of the United States in 2020. No stranger to controversy, Warren has served as the chairwoman of the Congressional Oversight Panel, as the Assistant to the President at the CFPB, and as a law professor at Harvard University.
• Cryptocurrencies, according to Warren, represent a threat to the financial market. The SEC is investigating cryptocurrency as a result of Warren’s letter.
Senator Elizabeth Warren is urging Treasury Secretary Janet Yellen to prohibit cryptocurrency. Although digital currencies have been regulated in other parts of the globe, this has not yet happened in the United States.
Due to the investment risk, the demand for crypto regulation seems to be a well-organized and planned campaign. Warren is certain that the crypto market poses a significant threat to the existing financial system.
In the early hours of Tuesday, the Senator submitted a letter to the Financial Management Council requesting a hearing. The Senator wants the regulatory body to stop dealing with cryptocurrencies as soon as possible with this letter.
Senator from the United States criticizes digital currency.
Cryptocurrencies, according to Warren, may be utilized from anywhere in the financial sector since they are widely available. There are approximately 2,000 tokens in circulation, with a market capitalization of about $2 trillion.
The Senator expresses her reservations regarding stablecoins, which have been accepted by a number of nations across the globe, including China. She also cautions against bitcoin financing and the usage of cryptocurrencies by banks. Warren’s recommendations indicate that he intends to outright prohibit cryptocurrency.
Warren, among other things, believes that the Financial Council should determine if cryptocurrencies are necessary in the present market. She also suggests that the FSOC act quickly before crypto’s dangers spread to the financial sector. By the end of the year, the rules should have been increased. Otherwise, Warren claims, it will have permanent effects.
Warren has called on the Securities and Exchange Commission (SEC) to take action against cryptocurrency.
Senator Warren’s anti-digital currency letter was released Tuesday morning after it was sent to the Senate Committee. Initially, the group intended to meet to address Ransomware and the financial market. The committee, on the other hand, has not set a date for a hearing on digital currencies.
Warren also urged the Securities and Exchange Commission (SEC) to take action against cryptocurrency. Warren has also challenged the head of the panel to reply to her request this week.
After Bitcoin recovered ground, Warren might have been enraged by cryptocurrencies. Bitcoin didn’t reach its highest point in weeks until Monday, with the current BTC price of $37846.
The Senator also wants the crypto market to be outlawed, as China, Japan, and the United Kingdom have done. Warren is likely to fail, regardless of what led her to send the letter on rules. Many businesses in the United States have begun to accept digital currencies, and analysts predict that this trend will continue.
On 11 Sep 2017, Elizabeth Warren, a Democratic Senator from Massachusetts, said the following in a speech: These companies are using new and novel ways to stay one step ahead of law enforcement and regulators, all while hiding behind claims of being victim to these same forces. They are using secret algorithms and clandestine transactions to move and launder money, and they are doing it with the help of shell companies and foreign banks. It’s a lot like the drug trade.. Read more about bitcoin price and let us know what you think.
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