The unforeseen future of cryptocurrencies has created an urge for traders to keep looking for answers. Thus, a favorable vantage point of the lawmakers spikes up hope in the industry. Something similar happened with U.S. traders when Senator Elizabeth Warren discussed the benefits of cryptocurrencies. She said that cryptocurrencies would enormously improve if they attained democratic access to the financial system. However, she also warned that a situation of the federal bailout would arise if something goes south, like a run on crypto.’
Ultimate upside and downside of the cryptocurrencies disclosed by Senator Elizabeth Warren
In an interview with Bloomberg, Senator Elizabeth Warren was questioned about her view of U.S. cryptocurrency regulations. She answered that if people are ready to trade, there should be surveillance to watch the regularities. She added if there is no surveillance, the small traders will suffer substantially.
She continued: Here, the regulations should be so that the rules give the traders the confidence of trading. The country has encountered scams where the traders were cheated because of the loosening grip of the law. With the crypto market, the regulators should have firm control to stop it immediately in any dilemma.
Replying about the downside and upside of the crypto world, Warren said: Millions of people in the United States are underbanked or unbanked, meaning they have to pay 3% to the cashier to get hold of their cash. For paying off essential utilities, they have to pay twice. The switch to digital currency could ease people in this segment.
Talking about the downside, she added the unregulated mechanism is something that scares her. The chances of getting cheated are incredibly high. If something goes the other way around than expected, it causes a run on the crypto situation, which she does not want the taxpayers to go through.