US Senator Warren Presses SEC to Address Crypto Exchange High Transaction Fees
Senator Elizabeth Warren discussed on the high fees system on the crypto exchanges especially at the DeFi Exchanges and she claimed that small investors may get easily wiped out.
At Tuesday’s Banking Committee hearing, Senator Elizabeth Warren talked about many facts of the crypto ecosystem that are very bad things for the small crypto investors.
First of all Warren raised the issues on the trading fees. She took an example. She said “, suppose I bought $100 worth of Ethereum and then next morning when I woke up and found that the price was up but what? If I am not able to sell my assets because of the down time of exchange.
At this question, Gary Gensler, Chairman of SEC, said that
“Not at a federal agency because they haven’t yet registered with us, even though they have dozens of tokens that may be securities.”
After this, Warren said that let’s take another example, suppose I heard about a token and I want to buy it with $100. But that token is not available at every exchange and I have to go for the particular DeFi Exchanges. And there are fees of $20 to buy, then how a small Investor can handle the situation.
At this question, Gary replied
“I don’t know because it will be all in the user agreement. And further said that there are many platforms “are only decentralized in name only,”
After this, Warren moved this matter toward the high transaction fees. Specially she targeted Ethereum network and claimed that
“The fee to swap between two crypto tokens on the Ethereum network was more than $500, obviously way more than the $100 I was trying to trade in the first place,”
In this situation, Warren considered crypto as a non-inclusion ecosystem of finance.
And after that she added
“There’s a whole list of problems with crypto: unreliable tech, scams, devastating climate impact. But high, unpredictable fees can make crypto trading really dangerous for people who aren’t rich”
This meeting between the SEC members and senate clearly shows that there will be some regulation on the fees system of the crypto exchanges.
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