A senior US senator has criticized the disruption of digital currency exchanges and the high fees of Ethereum transactions, saying the problems could hurt the low-income segment of society.
to the Report Coin Telegraph, Elizabeth Warren, a U.S. senator known for her outspoken criticism of the digital currency industry, this time criticized the closure of exchange offices and the rise in fees during price fluctuations.
On Tuesday last week, a meeting was held between the Senate Banking, Housing and Urban Development Committee and the chairman of the US Securities and Exchange Commission, Gary Gensler. Elizabeth Warren claimed at the meeting that the digital currency industry had failed to provide the necessary solutions to expand financial services in the United States. He cited last week’s decline in the prices of digital currencies, including Bitcoin and Ethereum, and said that “$ 400 billion has disappeared from market value” following the fall. Warren also reported that many users had difficulty accessing large exchanges such as Coin Bass.
Warren has said that investing in decentralized finance (DeFi) projects is risky because many of these projects are not registered with the Securities and Exchange Commission and are not necessarily covered by its rules. He also noted the increase in some commissions during price fluctuations; In one case, which occurred on September 7, the price of Bitcoin fell from $ 52,920 to $ 42,843 in one day.
Warren went on to criticize Ethereum’s high fees, saying that for some time the fee for converting two tokens on the Ethereum network, which were supposed to be $ 100, had exceeded $ 500.
Small investors easily run into problems in the face of these high and unpredictable fees, and [سرمایه آنها] They disappear completely.
Advocators [این صنعت] The digital currency market is said to be entirely focused on learning about financial services, but people who are more economically vulnerable are more likely to withdraw money earlier than others when the market collapses. High and unpredictable commissions can make digital currency trading very dangerous for the poor.
During the two-hour meeting with US officials, Gary Gensler raised issues with legislators about digital currency policy frameworks. One of the issues discussed at the meeting was that companies need to accurately explain to investors the risks of the system and other potential problems that may be associated with the stock exchange commission. In his statements, he encouraged projects in the field of digital currencies to meet with officials of the Exchange Commission and discuss the issue of securities that platforms can offer in the form of digital assets.
Senator Warren often criticizes digital currencies. He compares digital currencies to many illegal activities, such as “unreliable technologies” and scams, and highlights the area’s impact on climate change. Warren said last month that US banks should be barred from holding up deposits as financial backing for stable coins.