- Warren demands strict crypto rules to shield economy from collapse.
- Senator targets industry influence in shaping new cryptocurrency regulations.
- Guardrails sought to prevent crypto failures from destabilizing financial system.
Massachusetts Senator Elizabeth Warren is intensifying her push for strict cryptocurrency regulations, warning that weak oversight could leave the economy exposed to significant risks. According to MSNBC, Warren stressed that the cryptocurrency industry itself must not shape the rules.
She insisted that elected officials should face limits on trading digital assets. Warren also demanded measures that could help avoid crypto market failures when they could be transferred into the financial system.
The senator claimed that the existing constraints are not practical enough to provide any significant protection. “We have to put some restrictions in place,” she told MSNBC, renewing her vote against the GENIUS Act earlier this year.
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Industry Figures Note Warren’s Regulatory Shift
Justin Slaughter, vice president of regulatory affairs at crypto investment firm Paradigm, said it was notable to see Warren, one of the most prominent crypto critics, openly supporting regulation. He noted that in the interview, she did not criticize directly a large stablecoin bill she had opposed, but instead described what she would like to add to bills that govern market structure.
Her comments implied that she is keen on developing a more comprehensive legislative framework to regulate the risks of digital assets. Warren also wants to put people’s interests before corporate interests by promoting regulation that restricts industry power.
Slaughter also said that Warren’s stance might create a bipartisan forum for discussions on more consumer and market protections. Although she remains doubtful of most crypto activities, she is indicating an openness to participating in the development of effective policy.
The demand to increase oversight has been growing in Washington, where legislators are trying to find the means to promote transparency, consumer protection, and financial stability against the volatility of digital assets.
Warren’s latest comments underline her determination to push for urgent action before potential vulnerabilities escalate into economic instability.
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