US Senator Elizabeth Warren has voiced her concerns over the need for equal regulations within the cryptocurrency sector and the artificial intelligence (AI) domain controlled by major technology companies.
Her stance emphasizes the importance of a balanced approach governing emerging technologies and established financial systems.
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During a Bloomberg Television interview on February 27, Senator Warren said she wanted to work alongside the crypto industry to ensure that all players adhere to a consistent regulatory framework.
However, she argues that the crypto industry claims to only be able to thrive in a loosely regulated space, often associated with illicit activities, such as drug or human trafficking.
Warren pointed out that all participants in our financial system are generally subject to the same regulations. She added:
The same kind of activity, the same kind of risk should have the same regulations. I’m not looking for fancier regulations or anything tougher; I just want a level playing field.
The senator has proposed the Digital Asset Anti-Money Laundering Act, targeting the decentralized nature of blockchain technology and treating entities like nodes, validators, and noncustodial wallet providers as financial institutions.
However, the legislation has been criticized for being ill-suited to the technology's nuances and could push innovation and investment away from the US.
Warren's advocacy extends beyond cryptocurrencies to encompass the realm of AI, particularly the development of large language models by tech giants such as Google and Microsoft.
She argues that these corporations should not leverage their vast resources to monopolize new technological frontiers, thereby stifling competition and innovation from smaller entities.
Her concerns were shared at a conference in Washington, DC, where she proposed restrictions to prevent such dominance in AI advancements.
Warren's efforts underscore the challenges in creating a regulatory framework supporting growth while protecting the public interest.
The US Treasury has also recognized crypto-related concerns. The Under Secretary for Terrorism and Financial Intelligence, Brian Nelson, has recently addressed that cryptocurrency's use in terrorism financing may have been exaggerated.
