Senator Elizabeth Warren: DeFi is the most dangerous in the cryptocurrency world.

The US House of Representatives has argued that the value of a stable coin could "dip" because small-cap investors need the impact of a bearish reversal.

While criticizing Decentralized Finance (DeFi), Massachusetts Senator Elizabeth Warren was not shy about the impact of stable performance on ordinary investors.

During a Senate Treasury hearing on Tuesday, Warren asked Hillary Allen, a professor at the American University of Washington Law School, if the use of hard currency could hurt the United States' financial risk. Allen said that while those who have lost faith in the stable coin are unlikely to "round up" the buyout and have "interference" in business today, DeFi systems are likely to hear that impact. .

Warren believes that, because stablecoins ensure the "life of the DeFi ecosystem" outside regulated markets, their value will be "directly reduced when people need maximum security" and their impact will affect the existing economy. . He replied that he would go. crazy.

“DeFi is the most dangerous thing in the cryptocurrency world,” Warren said. In DeFi, someone is not sure whether or not. They're dealing with bad guys. "

Allen added that the threat posed by Warren could weigh on DeFi's future, but declined to comment on his allegations of illegal trade.

“I don't think DeFi can improve without a stable part. I think that's going to be a problem. So far, I think DeFi has been managed at a level that doesn't affect security.” But I think there is a real threat as it grows, especially if it interferes with our traditional finances. "

The theme addressed by US lawmakers during the hearing was "Stablecoins: how they work, how are they used and what are they?" - President Sherrod Brown called on cryptocurrency companies to make large deposits to protect consumers and investors. . Allen appeared as a witness along with Alexis Goldstein, CFO of Open Market, Jai Massari, partner of Davis Polk & Wardwell, and Dante Disparte, CFO. See Global Circle Rule.

Warren has previously argued in court cases and public statements that cryptocurrencies are often associated with crime. At a June hearing on digital banking, the Massachusetts senator said "there is currently no consumer protection in the global cryptocurrency" and called many tokens "fraudulent." . He also criticized the Ethereum network for the high exchange rate during the exchange rate.