Senator Elizabeth Warren believes that crypto technologies are a kind of shadow bank, that is, investors and depositors can also use financial services, as in federal banks, but, unlike the traditional method, when money is taken from banks, investors will not be protected here and their money can turn into dust.
Warren believes that shadow banking is an activity that takes place outside the traditional banking sector, and banking bypasses all areas of regulatory supervision. Senator Warren also went very hard on the storage of crypts, so that banks in the United States would be prohibited from storing personal deposits to support stablecoins.
This method can be a catalyst for the end of the growing crypto market. Warren is known as an anti-crypto revolutionary who opposes digital tokens, as they pose a threat to the dollar.
She also called on Treasury Secretary Janet Yellen to tighten the rules for related industries. According to her, investors, especially those who do not yet have experience in the crypto market, can suffer huge losses in unstable and unregulated markets, such as the crypto market.
Warren wrote a letter to Treasury Secretary Janet Yellen, touching on the problems that exist in the cryptocurrency market.The chairman of the Securities and Exchange Commission, Gary Gensler, believes that cryptocurrencies can coexist with fiat funds, but a clear and verified regulation of this industry is necessary.
According to Gensler, cryptocurrencies can become mainstream and even reserve federal currencies only when regulators keep the cryptocurrency market in their tight grip.
However, Gensler is neutral about the cryptocurrency market and is intrigued by the innovations that cryptocurrencies and their networks provide. However, he is sure that the cryptocurrency market will not survive without the regulation of this financial segment.The material has been provided by InstaForex Company - www.instaforex.com