WASHINGTON (dpa-AFX) - Senator Elizabeth Warren (D-MA) is seeking intervention from the Securities & Exchange Commission as several crypto platforms go bankrupt and investors losing money.
Last week, Celsius Network became the third major crypto lender to file for bankruptcy recently.
'Congress needs to act, but the SEC has a responsibility to use its authorities to put guardrails in place and crack down on crypto actors that break the rules,' Senator Warren told Yahoo Finance.
'I've been ringing the alarm bell on crypto and the need for stronger rules to protect consumers and financial stability,' Warren added. 'Too many crypto firms have been able to scam customers and leave ordinary investors holding the bag while insiders make off with their money.'
In an exclusive interview to Yahoo Finance, SEC Chair Gary Gensler said that rules for traditional brokerages to protect investors in the event of a brokerage failure could also apply to crypto.
'Just as there's difference between asset-backed securities and an equity offering, there may be differences here as well,' Gensler told Yahoo Finance in an exclusive interview.
'The public benefits by knowing full and fair disclosure and that somebody is not lying to them.basic protections and whether you're buying a crypto token or a security such as equities or a security such as an asset-backed security, those basic disclosures.'
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