US Massachusetts Senator Elizabeth Warren recently took over the company stand against the cryptocurrency.
At a hearing of the Congress of the Economic Policy Subcommittee of the Senate Committee on Banking, Housing and Urban Affairs on Wednesday, June 9, the cryptocurrency has significant problems for four reasons: illegal activity, investment issues, price volatility and environmental costs.
Warren, well known for his criticism of Wall Street and the founding of the Consumer Financial Protection Bureau, noted that encryption technology had created opportunities to help criminals, scam investors and exacerbate the environmental crisis.
“The threats of cryptography show that Congress and federal regulators can no longer hide in the hope that cryptography will disappear. It won’t come. It’s time to face these things ahead,” the Massachusetts senator said.
During the hearing, Warren asked Dr. Neha Narula, director of the Digital Currency Initiative at the Massachusetts Institute of Technology, whether the cryptocurrency system is reliable and stable. Narula said, “No, it’s unfortunately not,” citing the total value of cryptographic assets declining by about 40% over the past two months.
Warren replied, “That means a grocery store can take $ 100 Bitcoin pays for groceries, but by the end of the day, Bitcoin may only be worth $ 60, leaving the store lost. “
Warren also said the value of Dogecoin has risen more than tenfold in the past two months and then fell nearly 60%, noting that the meme cryptocurrency can work for speculators and investors in the evenings, but not for ordinary people looking for a stable source of value to pay for daily consumption.
In addition to this, Warren acknowledged that the traditional banking system has supplanted Americans, especially people of color, saying that 33 million households have a bank or subbank.
He pointed out that CBDC is better than cryptocurrency, citing the central bank’s digital currency as a great promise to act as a public alternative to cryptocurrencies.
While Warren is trying to prevent cryptography in the United States, El Salvador admitted Bitcoin as a legal tender earlier this week.
Hard order is coming
Many things have happened in the cryptography market recently. For example, China stopped mining the cryptocurrency currency and began decrypting the cryptography last month. This week, U.S. senators and CFTC commissioners attacked cryptocurrencies. In particular, Senator Warren said it was time for the United States to begin regulating alternative currencies.
Such a development occurs when U.S. government agencies urgently work together on a common regulatory framework for cryptocurrencies. Last month, the report showed that the OCC (Bureau of Currency Regulators) and the FDIC (Federal Deposit Insurance Corporation) began working together to address cryptocurrency issues and develop insights into encryption rules.
Meanwhile, the Ministry of Finance said that it was taking steps to plunder cryptocurrency transactions and the market by announcing that it would require all transfers worth $ 10,000 to be reported to the Internal Tax Service.
Jerome Powell, Governor of the US Federal Reserve, recently said that cryptocurrency poses risks to financial stability, citing greater regulation of increasingly popular digital assets.
Meanwhile, Hester Peircethe “secret mother” and the SEC commissioner recently opposed attempts by U.S. authorities to regulate cryptocurrencies more tightly, warning that doing so could deter investors.
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