Senator Warren: "Cryptocurrencies are new shadow banks" - Bits Media

Massachusetts Senator Elizabeth Warren Appeals To Regulators To Criticize Crypto Assets And Industry, built around cryptocurrency applications.

In a series of public letters, Senator Elizabeth Warren (Elizabeth Warren) started a kind of dialogue with the head of the Commission on securities and exchanges Gary Gensler (Gary Gensler), And also with the Minister of Finance, Janet Yellen.

In July, Warren wrote
Yellen and called her to a “coordinated and consistent regulation strategy to mitigate growing risks, which cryptocurrencies represent for the financial system ". In the letter, she noted, that “some” cryptocurrencies are very volatile and their unpredictable growth or fall can cause problems with financial stability, as well as the risk of liquidity, which some banks are faced with.

Also Warren, Buduchi is half
critic of crypto acts and services related to them, promotes the idea of "prohibition in the United States of storage of cash deposits, providing stablecoins ". In her opinion, Such a measure can effectively stop the market boom and reduce their popularity.

Warren expresses extreme concern of topics, that companies, Similar Blockfi, belong to the new generation of institutions, which looks like banks, but built on cryptocurrencies.

“Cryptophynancing is a new shadow bank. He provides many of the same services, but without consumer protection or financial stability, which support the traditional system. It's all the same, What to call straw gold ", – Warren said.

In the understanding of Elizabeth Warren, The definition of the "shadow bank" refers to the non -banking financial organization, which illegally provides the same services, but outside the banking regulation framework.

Despite
Close attention to Blockfi from regulators
and closing
business in a number of states in the United States, generally, experience
the company has become a guideline for many followers and new startups in the field of cryptocurrency lending.