US Senator Propose Law to Cut Ties Between Crypto and Banks

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A Senator in the United States, Elizabeth Warren, has shown her opposition towards the digital currency space again. She proposed that the senators should place restrictions on banks related to crypto. Elizabeth has always taken her anti-crypto stance, which she shows at any opportunity. 

Elizabeth Warren To Severe Banks And Cryptocurrency Relationship

The growing and progressive relationship between the banking sector and cryptocurrency space in the US may be cut off anytime soon. For the last few months, banks have been integrating cryptocurrency offerings into their services, which is a beneficial move for both parties.

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The United States Banking Committee is considering banning banks from offering crypto-related services. Elizabeth Warren proposed a letter to the committee and the house of Senators asking to authorize the Office of the Comptroller Currency to stop banks in the US from offering crypto services.

According to impeccable sources, the senate seems to agree with Elizabeth. The letter states that the risks in the crypto markets will corrupt the banking sector. 

This proposal by Elizabeth comes after OCC representative Michael Hsu warned about the recent migration and infusion of banks into the crypto space. Michael hinted that the crypto contagion to the financial sector might cause scrutiny as investors and customers are liable to lose their funds to liquidation.

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The proposed letter by Elizabeth state that the OCC’s rules and regulations regarding the banking system are inadequate. The Currency control agency should ensure financial institutions are well guided and prohibited from the consolidation and loss in the cryptocurrency markets.

Increasing Regulatory Acts Against Crypto in the United States

Over the past few months, the global cryptocurrency industry has faced many regulations and policy structures. The government, security commission, and other agencies are devoted to regulating cryptocurrency space with no impact on improving it. 

In most countries, cryptocurrency companies and firms are gradually being suffocated due to the number of regulations and strict guidelines. Some of these countries includes; the United States, Russia, and others. 

To curtail or regulate activities in the crypto space, Senator Elizabeth has pushed a regulatory proposition letter to the Senate members and banking committee. The letter appealed to all senators and committed members to sign a letter to the US Currency Comptroller banning forms of services offered by banks in the cryptocurrency space.

However, the letter proposed that the Office of the Comptroller of Currency should develop a mechanism by which banks can make a crypto offering. According to the letter, the banks’ customers and clients must be safe from any harm or liquidation.

 This new proposition is coming months after Elizabeth Warren came under criticism for proposing sanctions and regulations against the crypto space. The proposition was aimed to sanction cryptocurrency companies operating in Russia and US.

 However, the bill was criticized by crypto users and citizens, which was later disapproved after much uproar. Despite the much backlash, Elizabeth Warren still maintains her anti-crypto stance.

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