WASHINGTON, July 8 (Reuters) – U.S. Senator Elizabeth Warren on Thursday warned of the growing risks posed to consumers and financial markets by the “highly opaque and volatile” cryptocurrency market and blasted its lack of regulation as unsustainable.
Warren, a Democrat who chairs the Senate Banking Committee’s Subcommittee on Economic Policy, also raised her concerns in a letter to Securities and Exchange Commission (SEC) Chair Gary Gensler on Wednesday, in an effort that could help lay the groundwork for legislation to regulate the fast-growing market.
The former presidential candidate said she needed answers from Gensler by July 28 on the SEC’s authority to protect consumers investing and trading in cryptocurrencies, and determine what future congressional action was needed.
Cryptocurrencies reached a record capitalization of $2 trillion in April, but U.S. oversight of the market remains patchy.
“While demand for cryptocurrencies and the use of cryptocurrency exchanges have sky-rocketed, the lack of common-sense regulations has left ordinary investors at the mercy of manipulators and fraudsters,” Warren said in a statement.
“These regulatory gaps endanger consumers and investors and undermine the safety of our financial markets. The SEC must use its full authority to address these risks, and Congress must also step up to close these regulatory…