Democratic Senator, Elizabeth Warren urged policymakers to pursue crypto regulation and declared that cryptocurrencies are an “environmental disaster” in a hearing held by the Senate’s Banking Committee.
Warren is a longstanding Wall Street critic, who believes that cryptocurrencies have failed to enhance the lives of everyday Americans, and instead have generated myriad issues in need of immediate government response. In Warren’s opinion, crypto has created opportunities for criminals to scam investors, while the climate crisis continues to worsen. She states:
Warren also showed support for a digital currency backed by the Federal Reserve. She believes a well-designed digital dollar has great potential and it could uplift America’s poor while streamlining the country’s financial system.
The ongoing debate in Washington is one of the most direct efforts so far to explore the prospects and consequences of a Fed-backed digital dollar. Fed Chair, Jerome Powell has clarified that the central bank will not be moving ahead with the project in the absence of congressional support.
The US is seeking to tighten its grip on crypto transactions at the moment. In April, the Internal Revenue Service (IRS) gained a federal court’s permission to gather data on cryptocurrency traders suspected of violating tax laws.
American investors are capitalizing big-time on cryptocurrencies. A recent report revealed that Bitcoin stakeholders in the country made an estimated $4.1 million in profits.