U.S. Senator Elizabeth Warren is one of the strongest cryptocurrency skeptics in the U.S. government, calling the cryptocurrency industry “the new shadow bank.”
In an interview with The New York Times on September 5, Warren Said The cryptocurrency industry provides “many of the same services as shadow banking” but still lacks “consumer protection or financial stability that supports traditional systems”.
Warren expressed concern about the fast-growing stablecoin market. A stablecoin is a cryptocurrency whose value can be linked to the value of other assets, including fiat currencies such as the U.S. dollar and the euro, or commodities such as gold.
The senator said that it is “worthy of consideration” to prohibit the Bank of America from holding reserves to support private stablecoins, which “can effectively end the soaring market”.
The total market value of stablecoins such as Tether (USDT) And USDC coin (USDC) This year it has soared in a parabolic manner, jumping from all around 37 billion U.S. dollars January to $123 billion According to data from Statista and CoinMarketCap, at the time of writing.A large amount of stablecoin accumulation has been widely used Seen as an indicator of purchasing power For cryptocurrencies like Bitcoin (Bitcoin) Because the stable currency linked to the legal currency allows traders to easily deposit on the exchange to buy and sell cryptocurrencies.
As Warren made his latest remarks, global financial regulators paid more attention to stable currencies such as USDT.According to online reports, the Ontario Securities Commission recently prohibit USDT trading services provided by Wealthsimple and Coinberry, the first two registered cryptocurrency exchanges in Canada. In mid-July, U.S. Treasury Secretary Janet Yellen called on the financial authorities Establish an appropriate regulatory framework For stablecoins.