US Senator Cynthia Lummis Advocates for Crackdown on Bad Actors in Crypto Industry
US Senator Cynthia Lummis (R-WY) has reiterated her belief that crypto assets are not the problem in the industry, but rather it is the bad actors who cause issues. She emphasized this point in a recent video statement, stating that “crypto assets are not the enemy, bad actors are.” Lummis also emphasized the need for federal investigators to crack down on these bad actors.
Lummis Calls for Robust Regulatory Framework
Lummis has consistently called for a robust regulatory framework to prevent bad actors from operating in the crypto asset space. During a Senate hearing, she pushed for the passage of such a framework, stating that there needs to be clear paths to registration for crypto asset intermediaries. Lummis believes that it should be more difficult to operate in the shadows but also possible to operate compliant exchanges in the United States.
Lummis-Gillibrand Responsible Financial Innovation Act
Earlier this year, Lummis reintroduced the Lummis-Gillibrand Responsible Financial Innovation Act, which aims to place crypto assets within the regulatory perimeter and combat their use in illicit finance. The bill also imposes new penalties for violating these regulations. Its goal is to provide a clear regulatory framework for the crypto industry and prevent bad actors from operating.
Crypto Clash: Senator Lummis Vs. Warren
Lummis recently debated with Senator Elizabeth Warren about the role of cryptocurrencies in money laundering. Warren advocated for stricter crypto regulations, citing a case where the Sinaloa Cartel laundered $900,000 through digital assets. However, Lummis countered by revealing that the cartel had previously laundered almost $1 billion using traditional fiat currencies. This clash highlighted differing views on the impact of cryptocurrencies on illicit finance.
The Challenge of Regulating Cryptocurrencies
The debate between Lummis and Warren underscores the challenge of regulating cryptocurrencies while considering both innovation and security. Policymakers must create comprehensive frameworks that address both virtual and traditional currencies to effectively combat illicit finance. Lummis’ efforts to promote a clear regulatory framework for the crypto industry have gained support from industry experts who believe it would prevent bad actors from operating and provide certainty for investors and businesses.
Hot Take: Crypto Assets Are Not the Enemy, Bad Actors Are
US Senator Cynthia Lummis has consistently emphasized that crypto assets are not the problem in the industry, but rather it is the bad actors who cause issues. She advocates for federal investigators to crack down on these bad actors and has called for a robust regulatory framework to prevent them from operating. Lummis believes that it would be a mistake to crush the entire emerging industry based on incorrect data. The recent debate with Senator Elizabeth Warren highlighted differing views on the impact of cryptocurrencies on illicit finance, underscoring the challenge of regulating this space. Overall, Lummis’ efforts to promote a clear regulatory framework have gained support from experts in the industry.
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