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US senator urges Treasury Secretary Yellen to act on cryptocurrency scams to protect investors – regulation bitcoin news

US Senator Rick Scott has urged Treasury Secretary Janet Yellen to take action on cryptocurrency scams, which he said have increased by 1,000% over the past year and cost consumers at least $ 80 million. “This is an unregulated industry, and an alarming amount of criminal activity surrounding cryptocurrency demands action,” he told Yellen.

Senator Scott alerts Janet Yellen to cryptocurrency scam

Senator Rick Scott wrote a letter to Treasury Secretary Janet Yellen on Thursday, expressing concern about the increasing number of cryptocurrency-related scandals. The senator wrote:

I write today with concern about the risks posed by general investors and the significant potential of cryptocurrency-related scams.

He explained that “cryptocurrency values ​​have fallen drastically over the past few weeks, while reports of scams and fraud have skyrocketed.” Senator Scott cited Federal Trade Commission (FTC) research by stating That cryptocurrency scams have increased by 1,000% in the last one year and cost consumers more than $ 80 million, with the average amount of consumers lost in the $ 1,900 scam.

He continued:

It is an unregulated industry, and an alarming amount of criminal activity surrounding cryptocurrency demands action.

In his letter, the senator asked how the administration plans to “protect consumers and legitimate investors from widespread cryptocurrency scams” and how the Treasury Department will identify, prevent and prevent fraud and scams in initial coin offerings and procure cryptocurrency and Sales American Financial Markets. “

He also asked about the administration’s plan of action to remove any legal or regulatory uncertainties that could create an unnecessarily turbulent environment for cryptocurrency growth and sales, and what “additional steps” Congress should take needed.

Senator Scott also questioned what the administration is doing to “protect cryptocurrency markets from foreign interference by our opponents, including Communist China and Russia.” In addition, the senator “wants to know of any tools available to the administration that can provide more solid protection and guidance to investors and innovators on these topics.”

Yellen herself has on several occasions expressed concern over the use of cryptocurrency in illegal transactions. He had previously stated that cryptocurrency was mainly used Illegal financing and promised to work with other federal regulators to come up with a Effective Regulatory Framework for Cryptocurrency.

In February, the Treasury Secretary nominated Misuse Cryptocurrency as an increasing problem and stressed Importance Cryptocurrency regulation to ensure that bitcoins are not used in illegal transactions. He said that the current regulatory framework is not working To regulate cryptocurrencies. Meanwhile, the Biden administration is reportedly working Increased Cryptocurrency inspection.

What do you think Senator Scott asked Treasury Secretary Janet Yellen to take action to protect investors from cryptocurrency scams? Let us know in the comments section below.

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