Congress and SEC should take a tougher stance in the cryptocurrency industry. This was stated by Elizabeth Warren, member of the US Senate Banking Committee, writes Yahoo Finance.

“I raise the alarm about cryptocurrencies and the need for stricter regulations for consumer protection and financial stability. Too many companies have managed to deceive customers and leave ordinary investors with their noses,” he said.

According to him, SEC chairman Gary Gensler should take action in the near future.

Warren’s announcement came amid ongoing issues with a number of crypto-related companies. On June 13, Celsius Network suspended withdrawals, swaps and transfers between accounts “due to extreme market conditions”. A month later, the crypto lending platform filed for bankruptcy.

On July 5, it became known that due to “market conditions”, limits on withdrawal of funds were temporarily imposed by the CoinLoan platform. Prior to that, a possible restructuring was announced by the Vauld platform powered by Peter Thiel.

Earlier, crypto broker Voyager Digital reduced its daily withdrawal limit from $25,000 to $10,000 due to issues with Three Arrows Capital (3AC). In early July, the firm filed for bankruptcy.

A similar statement was posted by the hedge fund itself. The British Virgin Islands court decided to liquidate 3AC, and Singapore’s financial regulator denounced the company for providing false information and exceeding the threshold of allowable assets under management.

In September 2021, Warren drew attention to the need to regulate the digital asset industry amid the market crash and related disruptions in bitcoin exchanges.

Recall that in April 2022, the senator compared cryptocurrencies with the mortgage crisis in the United States.

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