WASHINGTON—U.S. Sen. Elizabeth Warren renewed her call for crypto legislation Thursday, drawing a hard line against rules shaped by the industry they would govern.
"We need crypto legislation. I've been saying this for a long time," Warren said. Legislation "written by the crypto industry to protect and advance the crypto industry—that's just not good crypto legislation," she said.
The crypto industry has pushed for regulatory clarity it argues is essential for mainstream adoption and institutional capital inflows. Warren's comments put her in direct conflict with that camp. Bitcoin trades at $64,426, holding above key support despite persistent regulatory headwinds.
Warren's push for stricter oversight could target decentralized finance protocols or stablecoin issuers. Industry-backed proposals focus on defining digital assets, establishing clear tax guidelines and creating streamlined licensing processes for exchanges. Capital has moved steadily from U.S.-based centralized exchanges to decentralized platforms and offshore venues. On-chain data shows consistent stablecoin outflows from U.S.-domiciled exchanges over the past six months totaling more than $12 billion.
The Crypto Fear & Greed Index sits at 25, signaling extreme fear. Large institutional players, while increasingly active following the January 2024 spot Bitcoin ETF approvals, remain sensitive to legislative ambiguity.
Congressional committees continue to debate digital asset bills, with several proposals stalled in both the House and Senate. The Securities and Exchange Commission and the Commodity Futures Trading Commission are expected to release further guidance on digital asset classifications and market operations in coming months.
