Community responds Elizabeth Warren’s WSJ op-ed, which correlated the fall of the FTX crypto exchange to crypto ruining the entire economy, did not go unnoticed by the online crypto community. Sen. Elizabeth Warren said that crypto will ruin the economy.
Since the situation began to unravel days before it declared bankruptcy on November 11, the entire cryptocurrency industry has been in disarray as a result of the collapse of the former crypto exchange FTX.A new opinion piece written by Senator Elizabeth Warren of the United States revealed that the industry has a bad attitude toward the consequences.
According to Warren, the cryptocurrency industry is traveling a “well-worn path of financial innovation” that begins with exciting rewards and ends with “crippling losses. “She compared it to credit-default swaps, penny stocks, and 2008 subprime mortgages.
The incident with FTX, according to the Senator, should serve as a “wake-up call” for regulators to enforce regulations on the industry.
Some individuals concurred with the senator on Twitter, tweeting that the cryptocurrency industry is nothing more than “smoke and mirrors” and that Warren has been attempting to warn the public all along. However many have pointed the finger back at her, saying controllers don’t grasp the business and induce dread with such remarks.
There is room for regulation when it comes to centralized exchanges, which are very different from crypto and decentralized exchange technology, according to one user.
The following day, the co-founder and CEO of Binance, Changpeng “CZ” Zhao, also tweeted about the subject, stating that failure always follows progress. He did not specifically refer to the op-ed.
Numerous members of the community stated in response to CZ’s tweet that this is the required reset crypto.
In the wake of the FTX scandal, regulators in the United States have been vocally expressing concerns. A letter from U.S. senators urging Fidelity to reevaluate its Bitcoin offerings in light of FTX was published on November 21.
Warren and Senator Richard Durbin made a letter they wrote to FTX’s former and current CEOs, Sam Bankman-Fried and John Jay Ray III, public on November 16.The letter contained 13 requests for the situation’s documents, lists, and responses.
Over the past year, Warren has been a vocal opponent of the cryptocurrency industry. She has previously referred to DeFi as “dangerous” and has been active in exposing unsustainable mining practices in the U.S. crypto mining scene. Her most recent op-ed also discusses these issues, as well as the role that cryptocurrency plays in money laundering and ransomware attacks.