During a Thursday interview with MSNBC, Sen. Elizabeth Warren (D-MA) sounded off on the GameStop saga that saw the video game store’s stock skyrocket. The GameStop surge caused trading apps like Robinhood to restrict purchases of the store’s shares on its platform.
Warren said ahead of the House Financial Services Committee hearing that what happened with GameStop should be a “warning bell” that “we have a stock market that is subject to manipulation” and “not functioning.” She urged the U.S. Securities and Exchange Commission to “put in place the appropriate regulations” to prevent future GameStop scenarios.
“This should be a warning bell,” Warren advised. “What happened with GameStop is not just about GameStop. It is the warning bell that we have a stock market that is subject to manipulation, a stock market that is not functioning. And that’s why the SEC needs to get up off their rear ends and put in place the appropriate regulations and then have a spine to go enforce those regulations.”
“Technology always opens up new opportunities, including new opportunities for fraud,” she added. “That’s why the SEC cannot just be a place that says, ‘Oh, we took care of market manipulation,’ and that now they’re done and don’t need to look at it again. Every time somebody’s got a creative new idea, to be able to game the system and get ahead of everyone else, the SEC needs to take a look. It’s all about level playing fields and transparency. Ultimately, that will be good for all of us, whether you have stock in the market or not, because that’s what creates the capital formation that drives our economy and drives businesses.”
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