Senator Elizabeth Warren Says Crypto Industry Is ‘Smoke and Mirrors’

Senator Elizabeth Warren Says Crypto Industry Is ‘Smoke and Mirrors’

• Elizabeth Warren asks SEC to regulate and enforce protection laws for consumers.
• Bitcoiner Bruce Fenton calls out Warren for previously supporting FTX’s Bill.
• SEC officials are investigating documents linking FTX.US and its parent firm.

U.S. Senator Elizabeth Warren, District of Massachusetts, expressed disdain over the crippling state of the crypto market via Twitter. She termed the industry as smoke and mirrors. Following this, she urged SEC to enforce the law on fraud and scams from crypto platforms.

The collapse of one of the largest crypto platforms shows how much of the industry appears to be smoke and mirrors. We need more aggressive enforcement and I'm going to keep pushing @SECGov to enforce the law to protect consumers and financial stability.https://t.co/uOPi8MV25J

— Elizabeth Warren (@SenWarren) November 10, 2022

She further goes on to declare further pushing SEC to protect the consumer and financial stability, from such fraudulent platforms and scammers in the future.

In detail, her Twitter thread started a debate of various ranging opinions on the topic. A crypto enthusiast named Aleksandra Huk, expressed her view on Warren’s tweet. Huk criticized Warren, saying, “Crypto is borderless. FTX was a centralized offshore exchange. Why you guys think everything revolves around the US is beyond me.”

Meanwhile, a Bitcoiner and SEC member, Bruce Fenton retweeted Warren mentioning that

Sam Bankman-Fried contributed nearly $5 million to Joe Biden and over $26 million to other Democrats. Also, the platform FTX, Warren referred to was the second-largest donor to Biden. According to Bruce, Warren supported Biden’s organization’s measure toward the bill.

On the other hand, SEC officials think that certain assets, as well as FTX’s loan product, may be securities that should have been registered with the SEC before being sold to investors under U.S. law. If this were the case, the company may also have violated U.S. exchange laws in its treatment of customer assets.

In an event hosted by the Healthy Markets Association on Wednesday, SEC Chairman Gary Gensler said:

We will continue to do our job as a cop on the beat. The runway is getting shorter for some of these intermediaries, I have to say.

Moreover, SEC authorities have contacted company attorneys to obtain further documents relating to the link between FTX.US and the parent firm in the Caribbean. According to the sources, they also inquired about connections between FTX and its founder’s trading company, Alameda Research.

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