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US Senator Urges Treasury Secretary Yellen to Take Motion on Cryptocurrency Scams to Defend Buyers

05/30/2021
US Senator Urges Treasury Secretary Yellen to Take Action on Cryptocurrency Scams to Protect Investors

U.S. Senator Rick Scott has urged Treasury Secretary Janet Yellen to take motion on cryptocurrency scams, which he mentioned have risen 1,000% previously 12 months and value customers at the least $80 million. “That is an unregulated trade, and the alarming quantity of prison exercise surrounding cryptocurrency calls for motion,” he instructed Yellen.

Senator Scott Alerts Janet Yellen to Cryptocurrency Scams

Senator Rick Scott wrote a letter to Treasury Secretary Jenet Yellen on Thursday elevating issues concerning the rising variety of scams involving cryptocurrencies. The senator wrote:

I write in the present day with concern in regards to the dangers taken by bizarre traders and the numerous potential for scams associated to cryptocurrency.

He defined that “Cryptocurrency values have fallen drastically over the previous couple of weeks, whereas experiences of scams and fraud have skyrocketed.” Senator Scott cited analysis by the Federal Commerce Fee (FTC) stating that cryptocurrency scams have risen 1,000% previously 12 months and value customers greater than $80 million, with the median quantity customers misplaced within the scams of $1,900.

He continued:

That is an unregulated trade, and the alarming quantity of prison exercise surrounding cryptocurrency calls for motion.

In his letter, the senator requested how the administration plans to “defend customers and bonafide traders from widespread cryptocurrency scams” and the way the Treasury Division will “determine, cease and stop fraud and scams in preliminary coin choices and the acquisition and sale of cryptocurrency on U.S. monetary markets.”

He additionally requested about “the administration’s plan to plan to handle any authorized or regulatory uncertainties that could be inflicting the unnecessarily turbulent setting for the event and sale of cryptocurrency” and what “further steps” Congress ought to take.

Senator Scott additionally questioned what the administration is “doing to guard cryptocurrency markets from international interference by our adversaries, together with Communist China and Russia.” As well as, the senator desires to know of “any instruments obtainable to the administration that will provide extra concrete safety and steering to traders and innovators on these matters.”

Yellen has herself voiced issues on a number of events over using cryptocurrencies in illicit transactions. She beforehand mentioned that cryptocurrency was primarily used for illicit financing and promised to work with different federal regulators to provide you with an efficient regulatory framework for cryptocurrencies.

In February, the treasury secretary named the misuse of cryptocurrencies as a rising drawback and harassed the significance of crypto regulation to make sure that bitcoin shouldn’t be utilized in illicit transactions. She mentioned the present regulatory framework is lower than the duty of regulating cryptocurrencies. In the meantime, the Biden administration is reportedly engaged on elevated cryptocurrency oversight.

What do you concentrate on Senator Scott asking Treasury Secretary Janet Yellen to take motion to guard traders in opposition to cryptocurrency scams? Tell us within the feedback part beneath.