Elizabeth Warren's tough-on-crypto bill is taking shape

12.7.22 - Should the SEC regulate crypto?

Gold last traded at $1,786 an ounce. Silver at $22.72 an ounce.

- Semafor --The crackdown on crypto begins in earnest. If Elizabeth Warren gets her way, the governing controls will be handed over to the SEC. Is this really the best entity for the job? Given the financial fallout experienced on Wall Street over the last several years, it would seem the SEC already has a full plate; but who else could be tasked with this responsibility? It is for this reason most experts have always warned "caveat emptor" when buying crypto, which still seems to be the most sound advice.

Sen. Elizabeth Warren, D-Mass. is working on a sweeping cryptocurrency bill that would hand the Securities and Exchange Commission most regulatory authority over the market, according to two people familiar with her efforts.

While discussions are still early and details could change, Warren's office is looking at a range of crypto-related issues, including regulations, taxation, climate, and national security. The senator has recently stepped up her criticism for the industry and demanded "comprehensive" new rules to govern it following the massive collapse of the crypto exchange FTX. (FTX founder Sam-Bankman Fried is an investor in Semafor.)

Ideas on the table in Warren's talks also include ensuring broker-dealers and crypto exchanges comply with certain regulatory obligations like providing audited financial statements, and imposing bank-like capital requirements so they're able to withstand financial shocks, the people said. Another is barring the commingling of customer assets so a company can't use customer deposits to finance other investments, and securing them so customers are first in line to get their money back in the event of bankruptcy. It could also further expand tax reporting requirements beyond new rules lawmakers enacted last year.