By
Godfrey Benjamin
April 26th, 2024
Warren called for restrictions on major cloud computing providers such as Microsoft, Alphabet and Amazon, stating that they had the potential to stifle the growth of smaller competitors.
United States Senator Elizabeth Warren (D–Mass.) is pushing for equal regulatory treatment of cryptocurrency and stricter controls on Big Tech’s involvement in the development of AI models.
Speaking in an interview with Bloomberg Television on February 27, the senator doubled down on her position on cryptocurrency, stating that she wants “to collaborate with the industry”. These sentiments follow a plea by the senator on Tuesday for restrictions on major cloud providers expanding into artificial intelligence.
Warren Calls for Equal Treatment of Crypto in US Finance Sector
Sen. Warren called for a level legal playing field for all participants in the financial sector, including crypto.
“In our financial system, pretty much everybody follows the same set of rules,” she stated, adding: “My view is that it’s the same kind of activity, the same kind of risk, and should have the same kind of regulations […] I’m not looking for fancier regulations or anything tougher; I just want a level playing field.”
Warren asserted that collaboration efforts have been inhibited by the industry itself. She stated that the industry seems to be suggesting that the only way they can survive is by allowing “plenty of space” for bad actors such as drug and human traffickers, ransomware and consumer scammers, terrorists and “rogue nations”.
The senator has faced criticism from the crypto industry for her proposed Digital Asset Anti-Money Laundering Act, which would bring the Bank Secrecy Act to crypto. The legislation seeks to hold decentralized financial technologies and service providers, including miners, validators, non-custodial wallets, and software providers, to the same standard as banks and stock brokers.
Crypto Industry leaders, organizations and associations have rallied against the bill, labeling it a potential hindrance to innovation in the sector. The act, which was proposed in late 2022, still awaits approval as people familiar with the matter claim that it is not an immediate priority for the Senate Banking Committee.
Elizabeth Warren: Limit Big Tech Dominance in AI
Senator Warren’s statement on crypto comes after remarks on Big Tech’s inroads into AI at the Bloomberg Beta and Y Combinator-hosted RemedyFest conference in Washington. Warren called for restrictions on major cloud computing providers such as Microsoft, Alphabet and Amazon, stating that they had the potential to stifle the growth of smaller competitors.
“Each of the major cloud services – Google, Microsoft, and Amazon – should not be allowed to use their enormous size to dominate a whole new field, and that means blocking them from operating large language models,” she said.