US Senator Cynthia Lummis (R-WY) has reiterated her stance that crypto belongings usually are not the issue, however relatively unhealthy actors are those inflicting points within the trade. In a current video assertion, Lummis emphasised that “crypto assets are not the enemy, bad actors are.”
She additionally highlighted the necessity for federal investigators to crack down on unhealthy actors within the crypto house.
Lummis has been a vocal advocate for the crypto trade, emphasizing that it might be a historic mistake to crush a whole rising trade primarily based on incorrect information.
Lummis Makes It Clear: Go After The Dangerous Guys
The lawmaker has constantly highlighted the necessity for a strong regulatory framework to stop unhealthy actors from working within the crypto asset house.
$900 million in non-crypto (fiat forex) cash laundering vs $900,000 in crypto cash laundering.
Crypto is clearly not the issue. Criminals and unhealthy actors are.
It will be a historic mistake to crush a whole rising trade primarily based on incorrect information. https://t.co/TEFEdvGG0o
— Senator Cynthia Lummis (@SenLummis) January 23, 2024
Throughout a Senate Committee on Banking, Housing and City Affairs listening to, Lummis pushed for the passage of such a framework, stating that the federal government has tried the “status quo,” the place crypto asset intermediaries function in an setting with out clear paths to registration.
She stated that as coverage makers, they should be making it harder to function a crypto asset middleman within the shadows, however additionally they must make it doable to function a compliant change in the USA.
Whole crypto market cap at $1.512 trillion on the day by day chart: TradingView.com
Earlier this yr, Lummis reintroduced the Lummis-Gillibrand Accountable Monetary Innovation Act, which locations crypto belongings throughout the regulatory perimeter, combats using crypto belongings in illicit finance, and imposes new penalties for willfully violating these laws.
This invoice goals to supply a transparent regulatory framework for the crypto trade, which might assist forestall unhealthy actors from working within the house.
In July, the US Senate handed the 2024 Nationwide Protection Authorization Act (NDAA), which included provisions associated to crypto belongings.
Crypto Conflict: Senator Lummis Vs. Warren
Lummis and U.S. Consultant French Hill (R-AR), Chair of the Home Digital Property Subcommittee, despatched a letter to Lawyer Common Merrick Garland urging the Division of Justice to swiftly handle platforms which have a historical past of permitting criminal activity.
In the meantime, senators Cynthia Lummis and Elizabeth Warren not too long ago debated the position of cryptocurrencies in cash laundering on Capitol Hill.
A brand new @USGAO report confirms that rogue nations are utilizing crypto to dodge sanctions and undermine our nationwide safety.
It’s time for crypto to observe the identical anti-money laundering guidelines as everybody else. I’ve bought a invoice to make it occur. https://t.co/TUX2sJ8HR0
— Elizabeth Warren (@SenWarren) January 21, 2024
Warren highlighted a case the place the Sinaloa Cartel laundered $900,000 by digital belongings, advocating for stricter crypto laws. Lummis countered, revealing the cartel had beforehand laundered virtually $1 billion utilizing conventional fiat currencies.
This conflict uncovered differing views on the affect of cryptocurrencies on illicit finance. Whereas Warren targeted on crypto, Lummis urged a broader perspective, emphasizing bigger sums laundered by fiat. Critics argued that Warren ignored conventional programs’ prevalence in cash laundering.
The controversy underscores the problem of regulating cryptocurrencies whereas balancing innovation and safety. Policymakers should create complete frameworks addressing each digital and conventional currencies to fight illicit finance successfully.
Lummis’ efforts to advertise a transparent regulatory framework for the crypto trade have been extensively supported by trade consultants. They imagine that such a framework would assist forestall unhealthy actors from working within the house and would supply a degree of certainty for buyers and companies working within the trade.
Featured picture from Freepik
