Sen. Elizabeth Warren spoke about regulating cryptocurrencies, protecting the ‘little ones,’ the future of cryptocurrencies, and the risk of government-instigated inflation in an interview on CNBC. When asked if the cryptocurrency sector needed more regulation and if the question was analogous to whether we should have regulated the internet more in the 1990s, Senator Warren said:
“I don’t want to wait until a lot of small investors and traders have been eliminated. I think the rules of the road that exist at the beginning give people a lot of confidence and bad actors know that someone is watching.
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The host played the role of devil’s advocate: “You are not protecting the small by regulating the industry, you are protecting the big ones. The little ones want the freedom to invest in whatever they want. In response, Sen. Warren insisted that she didn’t want the greats to be able to “pump and dump” and let people down.
“The question is not only regulation, but how it is aimed. Who takes advantage of the fact that there are no rules? They are the greats. When there is no police on the beat? The big ones “.
The future of cryptocurrencies
The host asked if the senator believed in cryptocurrencies as an idea, if it has a future, and if it could alter the financial industry in a positive way. In response, he drew attention to the inability of large banks to attract consumers across the country. She believes that digital currency may be an answer there because the costs are extraordinarily low to be able to transact and perhaps that is a way forward. He was referring to bringing more people into the system who are currently unbanked or underbanked and underserved.
Buying currencies as a hedge against inflation
Many people are buying Bitcoin (BTC / USD) as a hedge against inflation because they believe that the government is spending too much. The senator addressed this concern by encouraging people not to assume that what is happening with cryptocurrencies is happening in a vacuum, completely independent of everything else, including traditional financial markets. She added:
“What’s more, currencies may have their own inflationary pressures (although) they may come from a different source (than the government).”
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