Skip to content

Bitcoin ownership is too concentrated to solve financial inequality, says Senator E. Warren

Bitcoin ownership is too concentrated to solve financial inequality, says Senator E. Warren

United States Senator Elizabeth Warren has poked holes into the cryptocurrency sector’s ability to enhance financial inclusion for all.

Through her Twitter account, Warren singled out Bitcoin, stating that the asset is concentrated among a few individuals, noting that holdings must be diversified for financial inclusion to be achieved. 

Warren’s comment was a reaction to an article by the Wall Street Journal stating that about 0.01% of Bitcoin holders control 27% of the currency in circulation. 

“The crypto industry claims that crypto is the path to financial inclusion, But bitcoin ownership is even more concentrated within the top 1% than dollars. We need real solutions to make the financial system work for everyone, not just the wealthy,” said Warren. 

​​In recent months, Warren has been pushing for regulation of the cryptocurrency sector across the United States to protect investors. Warren, alongside other industry critics, state that digital currencies could destabilize the economy and are vulnerable to abuse by private entities.

According to Warren, cryptocurrencies are volatile and can harm small-time retail investors who she claims get cheated and lose money due to pump and dump schemes. Furthermore, Warren has taken issue with Bitcoin mining, claiming that crypto miners contribute to environmental damage.

U.S. next course in crypto regulation

Although the U.S. has yet to enact a standard crypto regulatory framework, lawmakers are divided on regulating the industry. However, some legislators are gearing up to introduce crypto-related legislation in the coming year. 

As previously reported by Finbold, Wyoming Republican Senator Cynthia Lummis intends to present a comprehensive crypto bill in 2022 focusing on taxations and protecting consumers.

Elsewhere, Warren’s criticism of wealthy crypto holders is part of her broad push to enhance equity in spreading wealth. Recently, the Massacheuttes senator blasted the country’s billionaires, accusing them of failing to pay taxes. 

In this line, she has had run-ins with Tesla (NASDAQ: TSLA) CEO Elon Musk on Twitter, accusing the billionaire of being a freeloader of paying $0 in income taxes in recent years. 

However, Musk hit out, describing the lawmaker as ‘Senator Karen’. During the spat, Musk revealed that his tax bill for 2021 will be around $11 billion. To facilitate the tax payment, Musk resorted to selling his Tesla shares. 

Best Crypto Exchange for Intermediate Traders and Investors

  • Invest in 70+ cryptocurrencies and 3,000+ other assets including stocks and precious metals.

  • 0% commission on stocks - buy in bulk or just a fraction from as little as $10. Other fees apply. For more information, visit etoro.com/trading/fees.

  • Copy top-performing traders in real time, automatically.

  • eToro USA is registered with FINRA for securities trading.

30+ million Users
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. eToro USA LLC does not offer CFDs, only real Crypto assets available. Don’t invest unless you’re prepared to lose all the money you invest.

Read Next:

Weekly Finance Digest

By subscribing you agree with Finbold T&C’s & Privacy Policy

Related posts

Disclaimer: The information on this website is for general informational and educational purposes only and does not constitute financial, legal, tax, or investment advice. This site does not make any financial promotions, and all content is strictly informational. By using this site, you agree to our full disclaimer and terms of use. For more information, please read our complete Global Disclaimer.