Democratic Senator Elizabeth Warren, known by many as an outspoken cryptocurrency skeptic in the U.S. government, criticized outages at exchanges and high transaction fees during periods of price volatility.
In a Tuesday hearing of the Senate Committee on Banking, Housing, and Urban Affairs with Securities and Exchange Commission chair Gary Gensler, Warren claimed the crypto industry had fallen short on providing solutions for financial inclusion in the United States. She mentioned the price drops among cryptocurrencies including Bitcoin (BTC) and Ether (ETH) last week, saying “$400 billion in market value disappeared” while many users reported problems accessing major exchanges like Coinbase.
Warren hinted that investing in decentralized finance, or DeFi, projects was “pretty risky” given the fact many have not registered with the SEC and aren’t necessarily within its regulatory umbrella. In addition, she highlighted some of the high transaction fees during periods of volatility — in this case, on Sept. 7, when the BTC price fell from $52,920 to