Elizabeth Warren Demands Crypto Regulation Free from Industry Influence

Massachusetts Senator Elizabeth Warren has renewed her call for tighter cryptocurrency oversight, emphasizing the need for proper investor protections and safeguards to prevent financial instability. Speaking on MSNBC, Warren argued that regulations should not be shaped by the crypto industry itself but by lawmakers focused on public interest.

A key point in Warren’s remarks was the proposal to restrict elected officials from trading cryptocurrencies. She believes such measures would help prevent conflicts of interest and ensure that regulatory decisions are not swayed by personal financial stakes.

Preventing Economic Fallout

Warren also stressed the importance of “guardrails” that could stop cryptocurrency from causing broader economic damage. While acknowledging that some rules exist, she described them as “weak” and insufficient to deal with potential systemic risks. This stance reflects her long-standing skepticism toward the crypto sector, which she warns could have destabilizing effects if left unchecked.

Not Just Opposition, Calls for Market Structure Additions

Interestingly, Warren did not criticize the major stablecoin bill she voted against earlier this year, the pioneering GENIUS Act. Instead, she highlighted the need for more comprehensive additions to market structure legislation. Her focus, she said, is on expanding the regulatory framework to address gaps in oversight and risk management.

Trump Crypto Earnings Under Scrutiny

Moreover, the recent Financial disclosures revealed that Trump earned more than $57 million from World Liberty Financial, the firm behind USD1. While he denies direct profits from the token, critics highlight conflicts of interest, especially after his administration’s recent decision to allow crypto in 401(k) retirement plans, a move analysts warn could funnel volatile assets into Americans’ pensions.