During a Tuesday hearing held by the U.S. Senate Banking Committee, Sen. Elizabeth Warren (D-MA) painted a rather grim picture of cryptocurrencies, reading a litany of problems that she believes plague the industry:
There’s a whole list of problems: unreliable tech, scams, devastating climate impact, but high unpredictable fees can make crypto really dangerous for people who are not rich.
The former presidential candidate, who’s considered to be one of the most left-wing politicians in the U.S., says that regulators need to step up in order to protect ordinary investors.
Warren mentioned that the fee for swapping tokens on the Ethereum network on decentralized finance platforms was more than $500 one week ago.
Related
She claims that small investors could get “jammed” and wiped out entirely because of the need to pay the exorbitant commission in order to withdraw their money.
The Massachusetts lawmaker also took issue with Coinbase experiencing downtime during the Sept. 7 market collapse, which prevented some users from accessing their funds.
Warren pointed to the sheer magnitude of the crash:
In a matter of hours, $400 billion in market value just disappeared.
Disclaimer: The opinions expressed by our writers are their
own and do not represent the views of U.Today. The financial and market information
provided on U.Today is intended for informational purposes only. U.Today is not
liable for any financial losses incurred while trading cryptocurrencies. Conduct
your own research by contacting financial experts before making any investment
decisions. We believe that all content is accurate as of the date of publication,
but certain offers mentioned may no longer be available.
