US Senator Elizabeth Warren says that unless there is regulation for cryptocurrencies, it will ruin the US economy.
Elizabeth Warren has linked the FTX scandal to all cryptocurrencies, suggesting that the latter can spell disaster for the economy. You then launched a public appeal to the authorities to regulate the entire cryptocurrency market.
In a recent op-ed for The Wall Street Journal, Elizabeth Warren compared cryptocurrencies to mortgages, penny stocks and credit-default swaps in 2008. With this comparison, Warren suggested that a similar result to 2008 could be upon us to the American economy if regulators do not intervene.
While it is true that the FTX scandal has aggravated the financial sector and beyond, many have reacted negatively to the Senator’s position. One could say that it is normal to react negatively when the Senator correlates FTX with the entire cryptocurrency industry.
Thus, many pointed out to the Senator that regulation is a necessity for centralized exchanges, not decentralized exchanges. Furthermore, FTX has not failed due to the flaws of cryptocurrencies. It failed because of some individuals, like SBF.
Shortly after Elizabeth Warren’s editorial, Changpeng “CZ” Zhao tweeted about what could happen to the cryptocurrency market. Though he didn’t respond directly to the senator, he acknowledged that the industry could suffer setbacks, like any innovation. However, he then said that the cryptocurrency market could come back stronger than ever in the next few years.
The position of the US senator on cryptocurrencies
A week ago, Elizabeth Warren publicly asked SBF to provide FTX-related documents explaining the current situation, which many saw as a good thing for the crypto community. However, Warren remains against cryptocurrencies, as she believes decentralization has major flaws. You have already mentioned that DeFi is dangerous for the US.
Finally, he believes that cryptocurrencies are responsible for money laundering and other wrongdoing. However, the senator fails to acknowledge that cryptocurrencies, when regulated sensibly, have proven to be very effective and can only improve the global economy. Bitcoin (BTC) was created in 2008 during the financial crisis. Many who have studied bitcoin believe it may be a solution to the malfeasance that centralized institutions such as banks have inflicted on the US economy in the past.
The senator also failed to mention that it was these legal authorities who allowed people like FTX to freely engage in risky transactions, as the latter was a major donor in the 2020 presidential election and 2022 midterm elections. These two donations included millions of dollars in support of the Democratic Party, of which US Senator Elizabeth Warren is a member.
Read also Investing in Bitcoin: this is what the rich think: Musk, Bezos, Gates, Arnault
Mainly for this reason, many believe that the mainstream media is trying to cover up what is really happening in the cryptocurrency market. For example, another Op-Ed in the WSJ tried to link the SBF to Donald Trump. The editorial also stated that the reason for FTX’s failure was that “Sam Bankman-Fried’s supporters have lost faith in him.” And why not mention that SBF has literally stolen billions of dollars from its users?
The mainstream media also failed to mention that people like Terry Duffy warned against FTX several months ago and even questioned the CFTC and Congress about SBF’s approach to the crypto industry. He has publicly called SBF a “fraud,” but authorities have taken no action. It is these authorities who choose to remain ignorant when it does not suit them. Watch the video to learn more:
The New York Times also came under fire for writing a “gross piece” involving FTX. Luckily, the cryptocurrency community isn’t stupid enough not to notice. Even people like Elon Musk have fought back.
However, if Warren and his ilk can continue to blame the cryptocurrency market when the authorities themselves have failed to control companies like FTX, it is only natural for the cryptocurrency community to react.
Now more than ever, people need to distinguish bitcoin and decentralization from centralized exchanges and everything that entails. As for Elizabeth Warren and her position, a call to action is in order. Regulation is a necessity, but not for bitcoin. Regulation is a necessity for centralized entities dealing with cryptocurrencies.
This article is brought to you in French in agreement with our partner crypto-academy.org
If you speak English, find the original English article on Crypto Academy