© Reuters. US Senator Warren says cryptocurrency is ‘dangerously illusory’
- Elizabeth Warren said the cryptocurrency is like delusional claims about past financial scams.
- The senator believes that the collapse of FTX indicates the need for protective regulation.
- Blockchain CTO David Schwartz agreed with the senator.
Elizabeth Warren, United States Senator, recently published an op-ed in the Wall Street Journal (WSJ) titled “Regulate Crypto or It Will Destroy the Economy.” In his column, Warren argued that cryptocurrencies are no exception to the “dangerously delusional” claims about financial schemes that have collapsed over the past 14 years.
The senator added that the collapse of FTX was a wake-up call for regulators to enforce preventive laws to protect Americans “before the next crypto disaster destroys the global economy.”
If the crypto industry can succeed without stealing from investors or providing money laundering services to terrorists and drug dealers, that’s great, but we won’t know until loopholes are closed and laws are strictly enforced.
While this sentiment does not sit well with some crypto enthusiasts, Ripple’s Chief Technology Officer for Blockchain, David Schwartz, believes the Senator’s views are “not a bad position to work in.” Schwartz clarified that he believes so, given that Warren agreed that the rules need to be changed and that it is important to ensure that cryptocurrencies are properly regulated.
It’s not a terrible position to work in. At the very least, he agrees that the rules need to change and that it is important to ensure that cryptocurrencies are properly regulated.
— David “JoelKatz” Schwartz (@JoelKatz) November 23, 2022
In an earlier tweet, Ripple’s CTO argued that if proactive tools do not deter asset managers from gambling with clients’ money, the FTX scam will repeat itself.
Schwartz further added:
If you’re holding billions of dollars of someone else’s money for an indefinite period of time, the temptation to speculate on those funds is irresistible unless there are verifiable checks that make such a risk almost impossible.
Web3’s retail and institutional investors have lost more than $60 billion this year due to the collapse of critical projects such as LUNA, FTX, Celsius and Voyager.
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