The US Senate Banking Committee called the cryptocurrency tool of fraudsters to destroy the financial system


Most of the representatives of the US Senate Banking Committee expressed their negative attitude towards cryptocurrency, calling them tools of fraudsters threatening financial stability.

During the hearing, many speakers tried to convince listeners not only that the crypto industry does not represent absolutely no real value for society, but also destabilizes the economy.

Senator Sherrod Brown compared the industry with a digital slot machine, managed by a fraudster, which helps to avoid taxes and enriches its creators, «burning» the others. He also said that there is nothing democratic or open in the «strange network money», and called for the development of norms that protect people from the «cryptomogators and their fraudulent populist marketing.»

Senator Tina Smith stated that most of the derivatives in the field of decentralized financing (DEFI) violate the US laws on commodity markets. She was supported by the CFTC Commissioner Dan Berkovits. In addition, Smith noted the negative impact of Bitcoin on the environment, refuting the arguments that mining would eventually become completely «green.»

However, not all speakers so negatively expressed the cryptocurrency. Senator Pat Tumi, who himself owns digital assets, was less critical in his statements. He only expressed concerns about the regulation of the crypton, while noting the advantages of the blockchain technology, and asked a question to one of the invited experts, asking how he refers to the electoral nature of the processing of transactions and the priority of payments with the greater Commission.

But the words of Senator Elizabeth Warren were the most «toxic» in relation to cryptocompany. During the speech, she compared the decentralization of Bitcoin with a fantastic story, with which the true controlled networks (miners and corporations) seek to obtain superiority over large financial institutions. After adding that the financial system controlled by banks prefers, and not a faceless group of programmers and miners.

In the afternoon, she previously sent the US Finance Minister an open letter in which he called on to form a plan for the fight against increasing threats emanating from cryptocurrency.

Despite the negative attitude of the majority of representatives of the banking committee, month earlier Senator of Cynthia Lammis

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