In a recent report, United States Senator Cynthia Lummis pointed out that the major problem faced in the cryptocurrency industry emanates from bad actors and not the assets themselves. Hence, the senator called upon the government to improve its approach to targeting and cracking down on illegal acts within the industry, while reintroducing the Lummis-Gillibrand Responsible Financial Innovation Act aimed at mitigating illegal finance.
According to the recent development, Senator Cynthia Lummis has reconfirmed her opinion on what was considered to be the major problem in the crypto industry. She stated that contrary to popular opinion, bad actors perpetrating various criminal acts in the industry are the core issue challenging investors rather than the digital assets themselves. Expressing her stance in a statement, she called out for legal actions against bad actors in the crypto sector.
Senator Lummis Called Out Crypto Bad Actors
Furthermore, Cynthia Lummis who is popularly known for her supportive advocacy for the crypto industry, pointed out the significance of differentiating between the inventive potential of digital assets and the criminal acts perpetrated by bad actors in the space. She urged the federal financial regulators and investigators to intensify their efforts in tracking down the perpetrators, in order to protect the industry’s integrity and protect investors.
In addition, Senator Lummis who had been big on warning the public about the potential risks and challenges associated with misinformed decisions and actions in the industry believed that well-informed and comprehensive regulatory measures are pivotal to building a secured and progressive crypto community.
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Moreover, she holds the opinion that a suitable regulatory framework is capable of preventing criminal activities as well as promoting the growth and development of legal digital assets business operations.
Cynthia Pushed For Regulatory Framework
While participating as a member of the Senate Panel on Banking, Housing, and Urban Affairs, Senator Lummis pointed out the need for a new comprehensive regulatory framework for the digital assets sector, claiming that the existing regulatory system is inadequate as it exposed crypto-asset mediators function in a foggy area which lacks clear guidance for compliance and registration.
She suggested that lawmakers should double their efforts on creating a business environment where crypto intermediaries find it difficult to perform clandestine operations while at the same time, creating a progressive protocol for crypto firms with good compliance status to thrive in the US crypto market.
In alignment with her call for crypto regulations, Senator Cynthia Lummis re-proposed the Lummis-Gillibrand Responsible Financial Innovation Act earlier this year. This legislation was designed to put digital assets in a perimeter with comprehensive laws. It introduced new punishments for individuals and entities that breached its guidelines which centered on mitigating financial crime activities related to cryptocurrency. Standing for improved security and regulatory clarity, the bill is considered a pivotal approach toward creating the much anticipated crypto regulatory frameworks.
Senators Debate On Crypto’s Part In Money Laundering
Furthermore, the report revealed that both Senator Cynthia Lummis and Senator Elizabeth Warren had a debate on Capitol Hill concerning the role of crypto assets in money laundering actions. In her speech, Senator Warren referenced a recent scenario where the Sinaloa Cartel used crypto assets to steal about $900,000 to suggest a need for stricter crypto rules.
Responding, the Senator stated that about $1 billion had earlier been laundered by the same Sinaloa cartel via traditional currencies, further highlighting how both traditional and digital currencies are used in money laundering and reflecting the need for clear financial systems to regulate them. It also suggested that US lawmakers should figure out a way to balance customers’ security and promote innovation as well as create a comprehensive crypto framework that mitigates illegal finance while adopting both digital and local currencies is pivotal to the future of global finance.
Meanwhile, Senator Lummis’ call for comprehensive crypto law seems to be receiving massive support from many crypto enthusiasts. They reportedly claimed that such rules would help to prevent bad actors from perpetrating the crypto industry.