Democrat Massachusetts Sen. Elizabeth Warren called cryptocurrency an “environmental disaster” and called for more regulation Wednesday, according to Bloomberg.
Warren called for more regulation in the cryptocurrency market and said that “it’s a Wild West out there”.
She also claimed that cryptocurrency like dogecoin and bitcoin is “not a good way to buy and sell things and not a good investment. Lastly she called it an “environmental disaster”, according to Bloomberg.
— Bloomberg TV (@BloombergTV) June 9, 2021
“Cryptocurrency has created opportunities to scam investors, assist criminals, and worsen the climate crisis,” said Warren during a congressional hearing held by the Senate Banking Committee Wednesday, according to Reuters. “The threats posted by crypto show that Congress and federal regulators can’t continue to hide out, hoping that crypto will go away. It won’t. It’s time to confront these issues head-on.” (RELATED: SEC Sues Cryptocurrency Firm Over $1.3 Billion In Illegal Securities)
She also said that a digital currency backed by the Federal Reserve shows “great promise.” Some Republicans, however, objected to this claim. “We don’t need a state-sponsored bank interfering with this successful free-enterprise system,” said Republican Pennsylvania Sen. Pat Toomey, according to Reuters.
American bitcoin traders earned $4.1 billion in profit last year, according to Bloomberg.
In April, a federal court gave the Internal Revenue Service (IRS) permission to collect information about cryptocurrency traders who are suspected of violating tax laws.