According to the latest Semafor report, the popular Democratic Senator and crypto critic, Elizabeth Warren, is looking to sponsor several crypto-related bills. The bills will cover crypto issues related to national security, legislation, taxation, and the environment.
According to sources familiar with the matter, the Senator made the moves following the recent FTX collapse. Also, she has intensified her efforts to ensure that lawmakers approve the bills.
Senator Warren remains firmly convinced that criminals exploit cryptocurrency as a means of money laundering and tax evasion. Last year, she labeled cryptocurrencies as “the next shadow bank,” indicating that this asset class is for shady characters and criminals.
Hence, it is no surprise that Senator Warren is reportedly sponsoring multiple bills that will grant the US SEC significant authority over the crypto market.
Senator Warren’s Fight Against Crypto Crimes
The proposed bill has several rules that make it harder for regular traders to invest in cryptocurrency. One such rule is that crypto exchanges and brokers must provide the SEC with their audited financial reports.
Another is that banks and crypto firms should abide by similar financial regulations. Thus, shocks in the crypto market will have less impact when any crypto firm collapses.
One of the bills also proposed stricter tax reporting requirements. A Democrat official added that Senator Warren is working on several crypto legislations.
She believes that financial watchdogs like the SEC already have much power to stop crypto fraud and unlawful money laundering. Under the bill, cryptocurrency holdings would be regarded as securities.
As a result, they would be governed by the same laws that apply to business stocks, which are more stringent than laws than those that apply to commodities. “If Bitcoin is not controlled, the entire economy could collapse,” Warren warned.
More seasoned financial experts, such as Fed governor Lisa Cook, were less critical of the crypto sector. Cook asserted earlier this month that the additional crypto restrictions were unnecessary because there was no crypto-related contagion in traditional finance.
Meanwhile, many lawmakers recently argued in favor of stricter regulations for cryptos that mimic those in traditional finance. However, those similar regulations would restrict financial freedom.
It requires burdensome paperwork and allows the government to monitor cryptocurrency accounts. Nevertheless, all actions are geared towards a check on crypto fraud and money laundering.
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