US Senator Warren says no to crypto, but a resounding yes to CBDC
In a recent interview, US Senator Elizabeth Warren made it clear that she is not a fan of cryptocurrencies. However, she also criticized the banking industry for high fees, lack of transparency and lack of speed. Instead, she believes central bank digital currencies (CBDCs) backed by the government can solve these problems.
Senator Warren’s thoughts on crypto regulations
The senator talked about the value of cryptocurrency and what kind of regulations she wants to see adopted. She compared cryptocurrencies to “air”, stating that digital assets are built on speculation. She compared the stablecoins to the money markets, but was still in doubt whether the best stablecoins are tied to the USD, as issuers claim.
In a chirping on “sham crypto audits” and holding auditors “accountable”, she caused a stir among the Twitter crypto community by tweeting in support of the Public Company Accounting Oversight Board (PCAOB). The PCAOB issued an advisory warning investors to exercise caution when relying on proof-of-reserve audits performed by crypto companies.
.@RonWyden and I called @PCAOB_News to hold auditors accountable for fake crypto audits and I’m glad they’re taking this step to protect investors.
But let’s be clear: there is more PCAOB that needs to be done so that consumers are not left in the bag when shady crypto firms collapse.
— Elizabeth Warren (@SenWarren) March 10, 2023
She also argued that unlike Bitcoin, which in her opinion is a “volatile token” without backing, CBDCs have the backing of the US government and are denominated in national fiat currencies. In her view, “if at the end of the day there’s a race on things, everybody wants their way out, the United States government promises there will be something to back it up.”
But her support for CBDCs has led some to question her stance on crypto. They argue that CBDCs rely on cryptographic hash functions just like decentralized cryptocurrencies. CBDC is a form of centralized crypto; therefore, Warren’s anti-crypto stance seems to contradict her support for CBDCs.
Warren, for his position on crypto, has long been criticized for being anti-innovation. They also claim that her support for CBDCs while attacking crypto is hypocritical.
Building an “Anti-Crypto Army”
Despite the criticism, Warren has remained steadfast in her support for CBDCs. She recently announced her re-election campaign, promising to create an “anti-crypto army” of conservative Republicans, bankers, regulators and watchdog groups. She is also said to be working with US Securities and Exchange Commission (SEC) Chairman Gary Gensler to crack down on crypto.
I am in this fight to put our government on the side of working families. Join our re-election campaign today: pic.twitter.com/fCUcqE9PZM
— Elizabeth Warren (@ewarren) March 29, 2023
Warren seems determined to continue his crusade against crypto. However, crypto supporters remain just as determined to defend their industry and push back against what they see as unfair criticism and attempts to stifle innovation.
In recent years, the United States, through the SEC, has cracked down hard on cryptocurrencies and related companies. Meanwhile, Hong Kong wants to create a crypto framework as it works to become a crypto hub for innovation in Asia.
Feature image from Canva, chart from TradingView
