US Senator Says DeFi is World's Most Dangerous Cryptocurrency

Massachusetts Senator Elizabeth Warren's criticism of Financial Management (DeFi) is a total scandal.

At the Senate House Finance Committee meeting on Tuesday, Warren asked Hillary Allen, a professor at the American University of Washington, Faculty of Law, if a stable operation could hurt the U.S. economy. Finances are risky. Allen said those who have lost faith in fixed parts will buy back fixed parts "in general". At this point, it does not appear to be "having an impact" on the traditional economy. In contrast, DeFi systems would be more likely to create the native world. Consider this impact.

Warren argued that since stablecoins bring "life to the DeFi ecosystem" outside of regulated markets, their value will be "lower when people need maximum security", affecting only finances. are still available.

Warren said that "DeFi is the most dangerous thing in the crypto world," "It is an unregulated and hopeless place to give crooks and crooks opportunities to engage with amateur traders." and crypto started. In DeFi, no one even knew if they were dealing. with terrorists. "

Allen added that Warren's threat could have been triggered by DeFi, but did not mention his take on the illegal trade.

“I don't think DeFi can be traded without a stable coin. I think that would be a problem. Now I think DeFi has been managed at a level that does not affect security financially, but if it continues, I think. It could be A. It would be a real threat, especially if it were part of our traditional finances. "

At the hearing on the topic "Stablecoins: how do they work, how are they used, and what are the risks?" The Sherrod Brown Board of Directors has asked cryptocurrency companies to publish information related to consumer and merchant security protections. , the above discussion occurs. Allen has co-chaired with Alexis Goldstein, director of financial policy at the Open Market, Jai Massari, partner of Davis Polk & Wardwell, and Dante Disparte, chief financial officer See Global Rule of the Circle.

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