{"id":44104,"date":"2021-06-10T11:47:24","date_gmt":"2021-06-10T08:47:24","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=44104"},"modified":"2025-08-31T15:26:32","modified_gmt":"2025-08-31T12:26:32","slug":"us-senator-calls-cryptocurrencies-a-shoddy-investment","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/us-senator-calls-cryptocurrencies-a-shoddy-investment\/","title":{"rendered":"US Senator Calls Cryptocurrencies a &#8216;Shoddy Investment&#8217;"},"content":{"rendered":"<p>U.S. Senator from Massachusetts Elizabeth Warren <a href=\\\"https:\/\/www.banking.senate.gov\/hearings\/building-a-stronger-financial-system-opportunities-of-a-central-bank-digital-currency\\\">called<\/a> cryptocurrencies a &#8216;shoddy investment&#8217; and said they facilitate illicit activity.<\/p>\n<p>\\n\\n<\/p>\n<p>On June 9, the Senate Banking Committee held hearings on the digital dollar. During the session Warren urged Congress and regulators to address the problem of the &#8216;unstandardized alternative to real money.&#8217;<\/p>\n<p>\\n\\n<\/p>\n<p>She described as schemes <a href=\"https:\/\/u1f987.com\/en\/news\/what-is-pump-and-dump\">Pump &#038; Dump<\/a>, allegedly widespread in the digital-asset industry, which are market manipulations. She noted regulators protect investors in the stock market from such practices, but their powers do not extend to cryptocurrencies.<\/p>\n<p>\\n\\n<\/p>\n<p>Warren reiterated her view in an interview with Bloomberg. The senator called the digital-asset market the &#8216;Wild West&#8217; and stressed that the United States needs to tighten regulation in this area.<\/p>\n<p>\\n\\n<\/p>\n<blockquote class=\\\"twitter-tweet\\\">\n<p lang=\\\"en\\\" dir=\\\"ltr\\\">Sen. Elizabeth Warren says cryptocurrencies need more regulation.<\/p>\n<p>\u201cWhat\u2019s happening right now\u2026it\u2019s a Wild West out there,&#8221; she tells <a href=\\\"https:\/\/twitter.com\/TheStalwart?ref_src=twsrc%5Etfw\\\">@TheStalwart<\/a> <a href=\\\"https:\/\/t.co\/hytD79iSTX\\\">https:\/\/t.co\/hytD79iSTX<\/a> <a href=\\\"https:\/\/t.co\/umEmcQ7la9\\\">pic.twitter.com\/umEmcQ7la9<\/a><\/p>\n<p>\u2014 Bloomberg TV (@BloombergTV) <a href=\\\"https:\/\/twitter.com\/BloombergTV\/status\/1402737639342723079?ref_src=twsrc%5Etfw\\\">June 9, 2021<\/a><\/p><\/blockquote>\n<p> <script async src=\\\"https:\/\/platform.twitter.com\/widgets.js\\\" charset=\\\"utf-8\\\"><\/script>\\n\\n<\/p>\n<p>The senator noted that cryptocurrencies are often linked to illicit activity. In her view, digital assets make it easier to commit crimes.<\/p>\n<p>\\n\\n<\/p>\n<p>As examples she cited ransomware attacks on <a href=\"https:\/\/u1f987.com\/en\/news\/hackers-from-russia-linked-to-colonial-pipeline-attack-via-ransomware\">Colonial Pipeline<\/a> and <a href=\"https:\/\/u1f987.com\/en\/news\/russian-hackers-suspected-in-attack-on-worlds-largest-meat-producer-jbs\">JBS<\/a>. In both cases the attackers demanded payment in bitcoins.<\/p>\n<p>\\n\\n<\/p>\n<blockquote class=\\\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\\\">\n<p>\u201cEvery hack that leads to a successful payout in cryptocurrency becomes advertising for new hackers attempting more cyberattacks,\u201d the senator believes.<\/p>\n<\/blockquote>\n<p>\\n\\n<\/p>\n<p>Warren did not overlook the environmental impact of mining. She stressed that cryptocurrencies based on <a href=\"https:\/\/u1f987.com\/en\/news\/what-is-the-proof-of-work-pow-algorithm\">Proof-of-Work<\/a> consume too much energy, much of it sourced from fossil fuels.<\/p>\n<p>\\n\\n<\/p>\n<blockquote class=\\\"twitter-tweet\\\">\n<p lang=\\\"en\\\" dir=\\\"ltr\\\">Bitcoin requires so much computing activity that it eats up more energy than entire countries. One of the easiest and least disruptive things we can do to fight the <a href=\\\"https:\/\/twitter.com\/hashtag\/ClimateCrisis?src=hash&#038;ref_src=twsrc%5Etfw\\\">#ClimateCrisis<\/a> is to crack down on environmentally wasteful cryptocurrencies. <a href=\\\"https:\/\/t.co\/derGr1bjuq\\\">pic.twitter.com\/derGr1bjuq<\/a><\/p>\n<p>\u2014 Elizabeth Warren (@SenWarren) <a href=\\\"https:\/\/twitter.com\/SenWarren\/status\/1402725005113364486?ref_src=twsrc%5Etfw\\\">June 9, 2021<\/a><\/p><\/blockquote>\n<p> <script async src=\\\"https:\/\/platform.twitter.com\/widgets.js\\\" charset=\\\"utf-8\\\"><\/script>\\n\\n<\/p>\n<p>The senator argues that central-bank digital currencies could displace &#8216;fake private digital money,&#8217; as they would be &#8216;safe, stable and widely accepted.&#8217;<\/p>\n<p>\\n\\n<\/p>\n<p>Earlier, Galaxy Digital founder Mike Novogratz warned that <a href=\"https:\/\/u1f987.com\/en\/news\/mike-novogratz-the-us-needs-a-digital-dollar\">the US would be at a competitive disadvantage<\/a> if a digital dollar is not created soon.<\/p>\n<p>\\n<\/p>\n","protected":false},"excerpt":{"rendered":"<p>U.S. Senator from Massachusetts Elizabeth Warren called cryptocurrencies a &#8216;shoddy investment&#8217; and said they facilitate illicit activity.<\/p>\n","protected":false},"author":1,"featured_media":44105,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1269,36,26],"class_list":["post-44104","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-cryptocurrencies","tag-regulation","tag-usa"],"aioseo_notices":[],"amp_enabled":true,"views":"22","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/44104","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=44104"}],"version-history":[{"count":1,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/44104\/revisions"}],"predecessor-version":[{"id":44106,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/44104\/revisions\/44106"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/44105"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=44104"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=44104"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=44104"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}