Elizabeth Warren Once Called For 'Aggressive Enforcement' Against Crypto Industry: 'Appears To Be Smoke And Mirrors'

Last November, Sen. Elizabeth Warren (D-Mass.) said the fallout of cryptocurrency exchange FTX FTT/USD showed a dire need for stringent regulations to protect consumers.

What Happened: Warren cited a Wall Street Journal report on the Security Exchange Commission launching a fresh probe into FTX. “The collapse of one of the largest crypto platforms shows how much of the industry appears to be smoke and mirrors,” she had tweeted then.

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According to Warren, the cryptocurrency industry needs more "aggressive enforcement." She stated that she would keep pushing the SEC “to enforce the law to protect consumers and financial stability.”

Coinbase CEO Brian Armstrong responded to Warren at the time, saying that FTX was an offshore exchange not regulated by the SEC.

“The problem is that the SEC failed to create regulatory clarity here in the US, so many American investors (and 95% of trading activity) went offshore,” he said, adding that “punishing U.S. companies for this makes no sense.”

After examining the company's financials, in November 2022, Binance walked away from the deal to acquire FTX.

This story was originally published on Nov. 9, 2022.

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