U.S. Senator Elizabeth Warren (D-MA) spoke in an interview about crypto investments and the problems they could cause. She called on the U.S. Securities and Exchange Commission (SEC) saying:
"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 [...] I’ve been ringing the alarm bell on crypto and the need for stronger rules to protect consumers and financial stability."
Companies like Celsius Network and Voyager Digital have already asked for bankruptcy protection. Celsius Network has frozen its withdrawals and Voyager Digital has voiced contamination in crypto markets. Warren pressed on, saying: "Too many crypto firms have been able to scam customers and leave ordinary investors holding the bag while insiders make off with their money."
Warren is not the only one concerned about crypto scams though. After discovering fake cryptocurrency apps, the United States Federal Bureau of Investigation (FBI) has announced a national caution. These apps have already tricked $42.7 million out of investors.
The U.S. seems to be going through several problems with crypto, as many people have lost their wealth and sense of financial security. These are the reasons why many are calling for better-defined crypto regulations.