Warren: U.S. government needs to confront crypto threats 'head on'

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Warren: U.S. government needs to confront crypto threats 'head on'
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U.S. Senator Elizabeth Warren on Wednesday called on U.S. policymakers to directly tackle issues presented by the growing use of cryptocurrency, while saying a Federal Reserve-backed digital currency shows 'great promise.'

U.S. Senator Elizabeth Warren speaks during a Senate Finance Committee hearing on the IRS budget request on Capitol Hill in Washington U.S., June 8, 2021. REUTERS/Evelyn Hockstein/Pool

Democrat Warren, a prominent Wall Street critic and consumer advocate, said cryptocurrency's promise of boosting everyday Americans has failed to materialize, and instead the government must act to address a host of problems. Warren threw support behind the Federal Reserve's consideration of a digital dollar, saying it could boost poorer Americans and streamline the payments system if properly designed.

"We don’t need a state-sponsored bank interfering with this successful free-enterprise system," said Senator Pat Toomey, who instead urged continued growth of private digital currencies.

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