US Sen. Elizabeth Warren says crypto will ruin economy —community responds
The downfall of former crypto exchange FTX has had the entire industry in disarray since the situation began to unravel days before it declared bankruptcy on Nov. 11. A new op-ed from United States Senator Elizabeth Warren revealed a negative stance towards the industry with regard to the fallout.
Warren wrote that the crypto industry is on a “well-worn path of financial innovation,” which starts with exciting rewards but ends in “crippling losses.” She compared it to subprime mortgages of 2008, penny stocks and credit-default swaps.
The Senator said what happened with FTX should be a “wake-up call” to regulators to enforce laws on the industry.
On Twitter, some agreed with the Senator, tweeting that the crypto industry is just “smoke and mirrors” and that Warren has been trying to warn the public all along. Though many have pointed the finger back at her, saying regulators don’t understand the industry and incite fear with such comments.
One user pointed out a middle ground saying there is room for regulation when it comes to centralized exchanges, which are much different than the technology of crypto and decentralized exchanges.
Centralized exchanges for crypto are a far cry from crypto the technology. Know the difference and only regulate the centralized exchanges. The risk is the centralized exchanges, not the crypto and not decentralized exchanges/finance. Crypto did not fail. SBF failed. SEC failed.
The following day, not referencing the op-ed specifically, the co-founder and CEO of Binance Changpeng “CZ” Zhao also tweeted on the topic saying where there is progress there is always failure.
Some (including me) say this will "set the industry back a few years." But thinking about it, this is natural. There will be
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