[Bitcoin Now] Warren "Cryptocurrency Market Needs Regulation" vs Novogratz "Already Progressive"

Elizabeth Warren US Senator Repeatedly Calls for Cryptocurrency Market Regulation
Novogratz: "If Traditional Finance Had Been as Transparent as Decentralized Finance, There Would Have Been No Subprime Mortgage Crisis"

[Image source=EPA Yonhap News]

[Asia Economy Reporter Byungseon Gong] U.S. Senator Elizabeth Warren and Mike Novogratz, CEO of U.S. cryptocurrency investment firm Galaxy Digital, clashed over the cryptocurrency market. Senator Warren argued that a healthy market must be created through regulation, while CEO Novogratz claimed that the cryptocurrency market has already advanced beyond the existing system.

According to U.S. economic media CNBC on the 27th (local time), Senator Warren, in a letter addressed to U.S. Treasury Secretary Janet Yellen, stated, “As demand for cryptocurrencies increases, investors and the financial system are increasingly at risk,” and urged that “the U.S. Financial Stability Oversight Council (FSOC) must swiftly implement regulations to ensure the safety of investors and the financial system.” She also added that the risks posed by cryptocurrencies include ▲lack of transparency ▲threats to existing financial systems such as banks ▲unstable stablecoins ▲hacking and other cyberattacks ▲risks of decentralized finance.

Senator Warren also emphasized the need for regulation in an interview with CNBC on the 28th. She explained, “Only by imposing stronger regulations on the cryptocurrency market can we root out fraudsters,” and “This is the way to increase trust among investors participating in the cryptocurrency market.” She cited the U.S. Food and Drug Administration (FDA) as an example. Just as the FDA, established in the early 20th century, built trust in pharmaceuticals, regulations can also build trust in the cryptocurrency market. Senator Warren stressed, “Strengthening regulations will not suppress innovations such as digital assets and blockchain,” and added, “I do not want a system that enables price manipulation, driving prices up and selling at the peak.”

[Image source=Reuters Yonhap News]

However, CEO Novogratz disagreed with Senator Warren’s remarks. On the 28th, he tweeted, “If banks had the transparency of decentralized finance from the start, the 2007 subprime mortgage crisis would not have happened,” and countered, “Senator Warren is not progressive.” The subprime mortgage crisis was a financial crisis caused by the mass bankruptcy of U.S. mortgage lenders selling unhealthy housing-related financial products, which led to a global financial market downturn, not just in the U.S. Furthermore, in an interview with CNBC, he said, “Decentralized finance and non-fungible tokens (NFTs) are helping artists and developers, not just those who made money from assets before,” and “We feel the need to go to Washington D.C. to educate lawmakers.”

Meanwhile, according to the domestic cryptocurrency exchange Upbit, as of 3:15 p.m. on the 29th, Bitcoin recorded 46.33 million KRW, down 0.03% compared to the previous day. After rising for six consecutive days starting from the 23rd, it is now taking a breather.