US Senator and crypto-skeptic Elizabeth Warren wants the Securities and Exchange Commission (SEC) to “redouble efforts” in its crypto enforcement efforts, stressing that the crypto industry is “spooked” by what’s to come.
Warren’s comments came during an interview with the American Economic Liberties Projects on Jan. 25.
The senator opined that since Gensler was sworn in as SEC chairman in April 2021, the Commission is off to a “good start” in fixing some of the problems created by former SEC leaders during the Trump administration.
Warren argued that the previous SEC administration “essentially gave the green light” to open up a cryptocurrency market “full of junk tokens, unregistered securities, scams, Ponzi schemes, pumps and dumps, money laundering and sanctions evasion.”
But now it’s being fixed under Gensler’s leadership, which Warren says has spooked industry leaders:
“It looks like the commission is still gaining momentum. This is why the industry fears a strong SEC, and this is why it spends millions of dollars every year lobbying to avoid SEC oversight.”
The crypto critic also pointed the finger at crypto lending companies, celebrity promoters and in-house traders who she said misled and defrauded retail investors.
But Warren didn’t stop there.
The Massachusetts politician said the SEC needed to “use the full force of its regulatory powers” to “manage fraud committed against American consumers.”
“The SEC must redouble its efforts and use its tools to enforce the rules, and where the SEC needs more cops, Congress must step up the resources and new powers needed to ensure the SEC can do its job. in full force in all corners of the crypto market.”
The senator also urged US regulators in the banking and environmental sectors to impose additional liability measures against some of the major players in the cryptocurrency industry.
Answer questions here. You won’t want to miss it. https://t.co/nj8xsJbPur pic.twitter.com/A1saROKeZU
— American Economic Liberties Project (@econliberties) January 25, 2023
“The Commission has been loud and clear that crypto does not go through long-standing security laws that protect investors and ensure the integrity of our financial markets,” she added.
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However, not all US senators seem to have placed Gensler’s SEC on the same pedestal.
New York Senator Richie Torres on December 6 asked the U.S. Accounts Office to investigate the SEC’s failure to investigate and expose the alleged FTX fraud in the months leading up to the collapse of the cryptocurrency exchange:
“You can’t have both while asserting authority and avoiding responsibility.”
A few days later, on Dec. 10, Minnesota Senator Tom Emmer criticized the SEC and Gensler for his misguided “cryptographic information gathering efforts” after the FTX crash, saying he should explain to Congress the cost of his “regulatory failures.” .