Elizabeth Warren, Massachusetts Senator It continues to criticize decentralized finance (DeFi), voicing concerns about how the stablecoins operation will affect the average investor.
In a hearing on Tuesday with the Senate Banking Committee to discuss the stablecoin, Warren did.question to Hilary Allen is a professor at the American University Washington College of Law on whether dealing with stablecoin could harm the US financial system, although Allen said that a “mass” of stablecoin redemptions is unlikely to have “critical consequences.” system” for today’s traditional market, but DeFi systems tend to feel more impactful.
Warren countered that because stablecoins are “the lifeblood of the DeFi ecosystem” outside of regulated markets. And she believes that “DeFi is the most dangerous part of the crypto world,” Warren said. “This is where effective regulation is lacking. And it’s no wonder this is where scammers, scammers, who in DeFi can’t even tell they’re dealing with terrorists.”
Allen added that what Warren was concerned about could be a potential threat to DeFi’s future.
“I don’t think DeFi can grow without stablecoins and now I think DeFi is regulated to the point that it won’t affect financial stability. But if it grows I think there might be a threat. Especially if it becomes our traditional financial system.”
Warren has previously used hearings and public statements to claim that cryptocurrencies Most of them are linked to illegal activities. In a June hearing on central bank digital currencies, Warren said that “the current crypto world has no consumer protection” and called many of the tokens a “scam” investment, and she also criticized the fees. High Transactions of the Ethereum Network during Price Fluctuations
The post ‘DeFi is the most dangerous part of the crypto world,’ says Senator Elizabeth Warren, appeared first on Bitcoin Addict.