US senator wants to ban cryptocurrencies

A US senator has called on banking institutions to restrict cryptocurrency transactions, a move that Elizabeth Warren hopes will lead to a ban on digital assets.

According to Senator Warren, the government needs to introduce a much stricter regulatory policy towards cryptocurrency companies. The representative of the Democratic Party urged her colleagues to sign a letter to the Office of the Comptroller of the Currency (OCC) asking to review the methods of controlling crypto platforms.

Elizabeth Warren also believes that the Federal Reserve System (FRS) and the Federal Deposit Insurance Corporation (FDIC) are obliged to ensure proper security and stability of the banking system by strictly regulating the circulation of digital coin issuers, including stablecoins. The senator is convinced that the bankruptcy of Terraform Labs and several other cryptocurrency companies has exposed the entire US economy to serious financial difficulties.

It seems that not only the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) continue to fight for regulatory control over cryptocurrencies, but U.S. senators also have something to say. As a reminder, it has recently become known that brokers, custodians, dealers, and businesses that trade in digital assets are required to register with the CFTC — otherwise, they face punishment. And the SEC plans to inspect the activities of every cryptocurrency exchange operating in America.