The politician criticized digital assets again, pointing to the large number of fraudsters in this area and the lack of regulation
Massachusetts Senator Elizabeth Warren, who was vying with Joe Biden for the Democratic presidential nomination, said at a banking committee meeting that the decentralized finance (DeFi) space is the most dangerous part of the crypto market. Warren explained that there are a lot of scammers in the DeFi industry and little to no regulation. The senator noted that stablecoins are the “lifeblood” for decentralized finance.
In September, Warren criticized decentralized financial instruments, calling the industry a “shadow bank.” The senator argued that DeFi services offer credit products to users without guaranteeing them protection and stability. Whereas the traditional financial system is based on the fulfillment of precisely these conditions, the senator added.
In July of this year, Warren already stated that cryptocurrencies pose a threat to the traditional financial system. The senator called for researching the positive and negative aspects of digital assets in order to understand how they can affect the traditional financial system.
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