Anti-crypto Senator Elizabeth Warren has been putting a lot of effort into a bill that would give the U.S. Securities and Exchange Commission control over the asset class of cryptocurrencies.
The Democratic Senator was looking into a number of crypto-related issues, according to Semafor’s report from December 7. These include laws, taxes, the environment, and national security, claim sources close to her administration.
Senator Warren has increased her efforts to promote rules in the wake of the FTX collapse. She fervently believes that cryptocurrency is a tool used by crooks to evade taxes and launder money. She made the infamous claim that cryptocurrency is “the new shadow bank” last year, implying that this asset class is for sketchy types and criminals.
Elizabeth Warren on the crypto warpath
The yet-to-be-finalized law encompasses a wide range of prospective requirements that would make retail traders’ ability to invest in cryptocurrencies considerably more difficult.
Among them is making sure cryptocurrency exchanges and broker-dealers comply with the requirement to provide audited financial accounts. She also wants to establish capital standards akin to those of banks so that they can withstand financial shocks.
Additionally, the bill aims to stop cryptocurrency companies from investing client money elsewhere. Banks actually act in this manner.
In addition, the measure would go beyond the regulations put in place last year to enhance tax reporting requirements.
A spokesperson for the Democrat told the outlet:
“As Senator Warren has already said publicly, she’s working on crypto legislation and believes that financial regulators, including the SEC, have broad existing authority to crack down on crypto fraud and illegal money laundering,”
Cryptocurrency assets would be classified as securities under such a bill. As a result, they would be subject to the same regulations as corporate stocks, which are subject to tighter regulations than commodities.
The entire economy could collapse if cryptocurrency is not regulated, Warren said in late November. Financiers with more experience, like Fed governor Lisa Cook, were less dramatic. She claimed earlier this month that the absence of a crypto contagion in traditional finance rendered new regulations unnecessary.
The Massachusetts Senator also urged Attorney General Merrick Garland, head of the Department of Justice, to open a thorough criminal investigation into FTX.
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