Cryptocurrencies Are Not A “Good Investment,” says US Senator Elizabeth Warren
"Cryptocurrency has created opportunities to scam investors, assist criminals, and worsen the climate crisis," is what else she thinks of crypto as she called for regulating the sector.
US Senator Elizabeth Warren called for the US government to step up oversight of the cryptocurrency market and find ways to protect consumers from scams stemming from the rise of cryptos.
In an interview with Bloomberg, Warren called the crypto market the “Wild West.” According to her, digital currency is “not a good way to buy and sell things and not a good investment and an environmental disaster.”
Volatile asset = not a good investment is a common fallacy — likely not a great idea for retirees to put all their $ in, but high risk high reward is the prototypically best thing for young people to invest in. https://t.co/DFLw29nBjJ
— Sam Trabucco (@AlamedaTrabucco) June 9, 2021
Just like many of her counterparts, Warren slammed Bitcoin for all the same repetitive remarks that have no truth to them. If only the politicians could get a proper understanding of exactly how blockchain, Bitcoin, and crypto works, and then go for constructive criticisms. But they decided to just blast off with the popular choice words.
“Policymakers are moving against us swiftly and aggressively. just note that they can't make the case against us without lying constantly,” commented Nic Carter, co-founder of Coin Metrics.
Warren said protection that already exists in other parts of the financial system is missing in the crypto market, and securities and banking regulators should look into improving the framework. She also said her committee plans to hold additional crypto-related hearings.
Earlier on Wednesday, Warren chaired a Senate Banking subcommittee hearing that explored issues with existing cryptocurrencies along with whether the US Federal Reserve should issue its own CDDC, digital dollar.
“Cryptocurrency has created opportunities to scam investors, assist criminals, and worsen the climate crisis,” said the Massachusetts Democratic Senator at the congressional hearing.
“The threats posted by crypto show that Congress and federal regulators can't continue to hide out, hoping that crypto will go away. It won't. It's time to confront these issues head-on.”
During the hearing, Warren also said the amount of energy needed to power the largest network threatens the environment, while some of the witnesses suggested that world governments should crackdown on crypto and even prohibit their conversion to USD.
According to Warren, a central bank digital currency shows “great promise.” Carter stated,
“Virtually everything she says about Bitcoin is a flagrant lie or misrepresentation. Her despotic Sino-CBDC won't substitute for or improve on Bitcoin, it will subject you to a fully permissioned yeastlife.”