At the Senate Banking Committee hearing on October 11, Elizabeth Warren, a Democratic senator, and potential 2020 presidential candidate opined that cryptocurrencies, including Bitcoin [BTC], were “easy to steal”. She also said that they had a negative effect on small investors as many ICOs “were scams”.
Pointing out these downsides of tokens, she said:
“The challenge is how to nurture productive aspects of crypto with protecting consumers.”
However, her comments have left investors and experts in a state of limbo as she failed to mention what her comparison parameter was.
Warren, on many occasions in the past, had criticized Bitcoin. She had said that she is worried for families and individuals investing their entire savings into such a volatile market.
She had said:
“It’s American families that end up paying the price when any regulator says we’re more interested in Wall Street. What I think is that we need a Fed that is engaged in watching where risk builds up in the system. That’s the Fed’s job — that’s not the job of American families.”
In early 2018, she had also made a controversial statement about how every blockchain project open to investors should register themselves with US Securities and Exchange Commission [SEC] to make sure their operations are legal.
Apart from Warren, many other prominent figures also shared their opinion about cryptocurrencies at the hearing.
Sherrod Brown, the senator from Ohio, was also skeptical about the future of cryptocurrencies. He said that despite the tall claims of bringing banking and financial freedom to every stratum of the society, Bitcoin and other tokens had not failed to facilitate real-world applications.
Some participants of the hearing did come in support of crypto space.
Mike Crapo, the current Banking Committee chair, forecast a favorable future for cryptocurrencies. Crapo said:
“Blockchain networks have the potential to improve processes for things like smart contracts, payments and settlement, identity management and even things yet undiscovered.”
The chair also warned investors to tread steadfast as the volatility of the cryptocurrency and blockchain environment are like “pump-and-dump schemes”.
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