• Senator Elizabeth Warren of Massachusetts is seeking to establish a new bipartisan congressional committee that would look into problems in the digital currency space and protect investors.
• The committee will involve both Republicans and Democrats, such as GOP lawmakers Roger Marshall and John Kennedy of Louisiana.
• However, some are skeptical of Warren’s intentions given her previous anti-crypto sentiments, citing her recent criticism of Fidelity for offering crypto investments to retirees.
Elizabeth Warren Seeks to Establish Congressional Crypto Committee
Senator Elizabeth Warren of Massachusetts is looking to create a new congressional committee that would investigate potential issues in the cryptocurrency space and promote investor protection. The bipartisan commission would involve both Democrats and Republicans, including GOP lawmakers Roger Marshall and John Kennedy of Louisiana.
Marshall has expressed appreciation for working with Warren’s office while Kennedy has emphasized Bankman-Fried’s mishandling of funds as an issue that needs to be addressed. Both have acknowledged the need for bipartisan support in looking into cryptocurrency matters.
Concerns about Warren’s Intentions
Despite this apparent show of bipartisanship, there are skeptics who believe that Warren may be biased against cryptocurrencies given her past criticism of Fidelity for providing retirees with opportunities to invest in digital assets like Bitcoin. Her words at the time were: „Bitcoin’s volatility is compounded by its susceptibility to the whims of just a handful of influencers.“
Fallout from FTX Incident
This recent move has likely been spurred on by the fallout from Sam Bankman-Fried’s FTX incident where he allegedly mishandled user funds. As such, it appears that this new congressional committee is being created out of concern over potential vulnerabilities within the cryptocurrency space.
Ultimately it remains unclear how effective this congressional committee will be in addressing issues related to cryptocurrency investments or if it will simply serve as another attempt by some lawmakers to regulate the industry and bring it down a peg or two. Only time will tell what effect this new initiative will have on the market going forward.