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Crypto vs. Wall Street: Senator Pushes for "Level Playing Field" and Big Tech AI Crackdown

U.S. senator pushes for regulatory parity in the financial sector

United States Senator Elizabeth Warren emphasizes the need for a harmonized regulatory landscape for cryptocurrencies and traditional finance, aiming for fairness and collaboration within the industry. In a revealing interview with Bloomberg Television on February 27, Warren articulated her vision for the financial system. 

She remarked:

"In our financial system, pretty much everybody follows the same set of rules,"

Warren continued: 

"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."

However, Warren highlighted challenges in aligning with the crypto industry, which she feels seeks leniencies that could foster illegal activities. She expressed concern over the industry's resistance, stating: 

"collaboration efforts had been hampered and claimed the industry says the only way they can survive is if there’s plenty of space for crime" 

— citing ransomware, drug trafficking, and terrorism as areas of concession.

Her legislative proposal, the Digital Asset Anti-Money Laundering Act, seeks to bring decentralized technologies under the same regulatory umbrella as traditional financial institutions, a move met with strong opposition from the crypto sector.

Curbing Big Tech's AI ambitions

Warren is setting her sights on Big Tech's foray into artificial intelligence, particularly large language models. At a conference in Washington D.C., she voiced her concerns about the potential for market dominance by the tech giants. 

Warren declared:

"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," 

Her argument stems from the belief that these conglomerates, with their vast resources, could overshadow emerging competitors in AI, stifling innovation and competition. Warren's critique of Big Tech's expansion into AI underscores her broader campaign against the concentration of market power and her advocacy for maintaining competitive landscapes across industries.