Elizabeth Warren.
Lou Rocco is with ABC.
Senator Elizabeth Warren has rejected the claim that digital assets will foster financial inclusion, pointing to the concentration of wealth across the richest individuals.
"We need real solutions to make the financial system work for everyone, not just the wealthy," the Democratic senator said in a statement. The top 1% of the population has more control over the digital currency than dollars.
Warren linked a recent story published by The Wall Street Journal to a study conducted by the National Bureau of Economic Research.
The senator claimed that the top 10,000 accounts held 5 million bitcoins. This combined holding is roughly $239 billion.
The WSJ article said that a small percentage of the 19 million digital currency in circulation are held by holders.
In June this year, Warren called on the Treasury Secretary to bring in tougher rules for related industries. In August, the senator urged regulators to take hold of the piece that's within their jurisdiction.
Her main concern is the damage these volatile assets can do to small-time retail investors who are mostly getting cheated or losing money thanks to pump and dump schemes.
Lawmakers seem torn about how to regulate the $3 trillion dollar industry despite the rapid growth of the space.
You're sitting on a windfall. Here's what you need to know about taxes and how to minimize them.
Business Insider has an original article.
