Senator Elizabeth Warren Argued Over High Crypto Gas Fees

HIGHLIGHTS

  • Senator Elizabeth Warren slammed the ethereum network’s high fees during periods of strong trading volatility.
  • In a Senate committee hearing on Tuesday, she added, “Small investors might easily get jammed and wiped out totally.”
  • Last week’s crypto exchange disruptions, according to Warren, may have harmed people who don’t have enough money to lose.

Senator Elizabeth Warren has criticised the high fees on the Ethereum network during periods of heavy trading volatility, claiming that they could affect small investors significantly.

The Ethereum network costs can fluctuate dramatically due to the blockchain’s usage of a blind auction procedure to determine them.

To have their transaction processed and validated by miners, users must place bids. Because of this competition, costs might skyrocket when the network is crowded.

“In the face of these high, unpredictable fees, small investors could easily get jammed and wiped out entirely.”—In statements to SEC Chairman Gary Gensler, Warren remarked

In a tweet, she summed up all her concerns and opinions over cryptocurrency gas fees and tagged Gensler to review the problem.

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,”— Warren said.

With the London upgrade, dubbed EIP-1559, the way fees were calculated on the ethereum network changed. However, the goal was not to make them cheaper, but to make them more predictable.

Warren, the chair of the Senate Banking Committee, is one of many senators concerned that the crypto industry’s absence of centralised authorities leaves small investors vulnerable and at risk of being horribly burnt.

She earlier urged Treasury Secretary Janet Yellen to take action, stating that the financial system need a coordinated regulatory plan to mitigate the rising risks posed by cryptocurrencies.

Several of the largest cryptocurrency exchanges had problems during the sell-off, preventing users from completing withdrawals. According to Warren, this could have had an influence on folks who don’t have a lot of money to lose.

TWITTERATIS CHARGED OVER WARREN’S STATEMENT

After spreading too much negativity for cryptocurrency many times, this time warren has been slammed by crypto investors for her criticising talks regarding cryptos.

A twitter user thrashed Gary Gensler and Senator for creating negative image of virtual currency in people’s mind.

Another user wrote that, “Inconvenient fact: the underserved persons of color that @SenWarren & @GaryGensler falsely claim they want to protect really like crypto over legacy finance.

The Warren-Gensler battle against crypto, the mass token delistings they desire, would hurt these groups.”

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