{"id":48929,"date":"2021-09-06T10:23:35","date_gmt":"2021-09-06T07:23:35","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=48929"},"modified":"2025-09-02T09:56:49","modified_gmt":"2025-09-02T06:56:49","slug":"senator-elizabeth-warren-calls-cryptocurrencies-the-new-shadow-banks","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/senator-elizabeth-warren-calls-cryptocurrencies-the-new-shadow-banks\/","title":{"rendered":"Senator Elizabeth Warren calls cryptocurrencies &#8216;the new shadow banks&#8217;"},"content":{"rendered":"<p>Senator Elizabeth Warren, chair of the Senate Banking Committee&#8217;s Subcommittee on Economic Policy, said in an interview with the <a href=\"https:\/\/www.nytimes.com\/2021\/09\/05\/us\/politics\/cryptocurrency-banking-regulation.html\">New York Times<\/a> that cryptocurrencies are \u201cthe new shadow banks\u201d <a href=\"https:\/\/ru.wikipedia.org\/wiki\/%D0%A2%D0%B5%D0%BD%D0%B5%D0%B2%D0%B0%D1%8F_%D0%B1%D0%B0%D0%BD%D0%BA%D0%BE%D0%B2%D1%81%D0%BA%D0%B0%D1%8F_%D1%81%D0%B8%D1%81%D1%82%D0%B5%D0%BC%D0%B0\">shadow banks<\/a>.<\/p>\n<p>The statement was backed by a current <a href=\"https:\/\/u1f987.com\/en\/news\/new-jersey-regulator-delays-september-start-of-blockfi-ban-on-new-bia-accounts\">investigation<\/a> by regulators in several states into BlockFi, a crypto-lending platform. Regulators raised concerns regarding the firm\u2019s <span data-descr=\"BlockFi Interest Account\" class=\"old_tooltip\">BIA<\/span> accounts, in which they saw unregistered securities.<\/p>\n<p>Warren warned that crypto startups like BlockFi could evolve into services that provide banking services.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>\u201cCryptocurrencies are the new shadow banks. They enable products offered by lending institutions, but without user protection and\/or the financial stability on which the traditional financial system rests. This is like weaving gold from straw,\u201d<\/em> she said.<\/p>\n<\/blockquote>\n<p>Warren proposed banning US banks from holding the reserves of stablecoin issuers. They gained this ability after <a href=\"https:\/\/u1f987.com\/en\/news\/u-s-regulator-allows-banks-to-hold-stablecoin-reserves\">the decision<\/a> by the Office of the Comptroller of the Currency within the U.S. Treasury Department. The senator argues that this could put an end to the growing market.<\/p>\n<p>Earlier in July, Warren <a href=\"https:\/\/u1f987.com\/en\/news\/senator-elizabeth-warren-urges-tougher-regulation-of-cryptocurrencies-in-the-united-states\">urged<\/a> US Treasury Secretary Janet Yellen to lead the development of a strategy to reduce the growing risks that cryptocurrencies pose to the financial system.<\/p>\n<p>Earlier, the senator <a href=\"https:\/\/u1f987.com\/en\/news\/us-senator-calls-cryptocurrencies-a-shoddy-investment\">described<\/a> cryptocurrencies as a \u201clousy investment\u201d and said they facilitate illicit activity.<\/p>\n<p>In August, in response to Warren&#8217;s inquiry, <span data-descr=\"Securities and Exchange Commission\" class=\"old_tooltip\">SEC<\/span> Chairman Gary Gensler <a href=\"https:\/\/u1f987.com\/en\/news\/gary-gensler-sec-needs-additional-authority-to-regulate-crypto\">noted<\/a> that the agency needs additional authority to regulate cryptocurrencies.<\/p>\n<p>Follow ForkLog&#8217;s news on <a href=\"https:\/\/www.facebook.com\/forklog\" target=\"_blank\" rel=\"nofollow noopener\">Facebook<\/a>!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Elizabeth Warren, chair of the Senate Banking Committee&#8217;s Subcommittee on Economic Policy, told the New York Times that cryptocurrencies are &#8216;the new shadow banks&#8217;.<\/p>\n","protected":false},"author":1,"featured_media":48930,"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":[1269,36,1230,26],"class_list":["post-48929","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-cryptocurrencies","tag-regulation","tag-us-congress","tag-usa"],"aioseo_notices":[],"amp_enabled":true,"views":"21","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/48929","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=48929"}],"version-history":[{"count":1,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/48929\/revisions"}],"predecessor-version":[{"id":48931,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/48929\/revisions\/48931"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/48930"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=48929"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=48929"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=48929"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}