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U.S. Senator and crypto-skeptic Elizabeth Warren wants the Securities Exchange Commission (SEC) to “double down” on crypto enforcement efforts, pointing out that the cryptocurrency industry is “afraid” of what’s to come.

by Warren comments came during an interview with the American Economic Liberties Projects on January 25.

The senator felt that since Gensler was sworn in as SEC Chairman in April 2021, the Commission “has gotten off to a good start” in resolving some of the problems created by former SEC executives during the Trump administration.

Senator Elizabeth Warren wants Congress to deploy more authority and resources to help the SEC’s crackdown on cryptocurrency industry players. Source: Reuters

Warren claimed that the previous SEC administration “essentially gave the go-ahead” to open up a cryptocurrency market “full of junk tokens, unregistered securities, rug draws, Ponzi schemes, pumps and dumps, money laundering and evasion of sanctions”.

But that’s now being cleaned up under Gensler, which is spooking industry leaders, according to Warren:

“It seems that the commission continues to gain momentum. That’s why the industry is afraid of a strong SEC, and that’s why it spends millions of dollars every year lobbying to escape SEC scrutiny.

The crypto critic also pointed the finger at crypto lending companies, celebrity promoters and insider traders who she said misled and deceived retail investors.

But Warren didn’t stop there.

The Massachusetts politician said the SEC must “use the full force of its regulatory powers” to “rein in on the frauds inflicted on American consumers.”

“The SEC should double down and use its tools to enforce the rules, and where the SEC needs more cops on the spot, Congress needs to step up the resources and new authorities needed to ensure the SEC can do its job. . at full strength in every corner of the crypto market.

The senator also called on U.S. banking and environmental regulators to impose more accountability measures against some of the biggest players in the cryptocurrency industry.

“The commission has said loud and clear that crypto doesn’t get a pass for long-standing security laws that protect investors and ensure the integrity of our financial markets,” she added.

Related: Congress may be ‘ungovernable’, but US could see crypto legislation in 2023

However, not all US senators seem to have put Gensler’s SEC on the same pedestal.

New York Senator Ritchie Torres on December 6 asked the US Government Accountability Office to conduct an investigation into the failure of the SEC examine and expose FTX’s Alleged Fraud months before the cryptocurrency exchange collapsed:

“You can’t have it both ways, asserting your authority while avoiding accountability.”

A few days later, on December 10, the Minnesota senator Tom Emmer criticized the SEC and Gensler for his flawed “cryptographic information gathering efforts” after the collapse of FTX, saying he should have to explain the cost of his “regulatory failures” to Congress.