U.S. Senator Rick Scott has urged Treasury Secretary Janet Yellen to take action against cryptocurrency fraud, which rose 1,000% over the past year and cost consumers at least $ 80 million. “This is an unregulated industry and the alarming amount of criminal activity related to cryptocurrency requires action,” he told Yellen.
Senator Scott warns Janet Yellen about cryptocurrency fraud
Senator Rick Scott wrote a letter to Treasury Secretary Jenet Yellen Thursday expressing concerns about the rising number of cryptocurrency scams. The Senator wrote:
I write today with concern about the risks common investors take and the significant potential for cryptocurrency-related fraud.
He stated that “cryptocurrency values have plummeted in the past few weeks while reports of fraud and fraud have skyrocketed.” Senator Scott cited Federal Trade Commission (FTC) research that found cryptocurrency fraud increased 1,000% over the past year, costing consumers more than $ 80 million, with the average amount of consumers losing $ 1,900 in the scams.
This is an unregulated industry and the alarming amount of criminal activity related to cryptocurrency calls for action.
In his letter, the senator asked how the administration will “protect consumers and legitimate investors from widespread cryptocurrency scams” and how the finance department will “continue to identify, stop and prevent fraud and fraud in initial coin offerings and in the buying and selling of cryptocurrency.” Financial markets. “
He also asked about the government’s plan to remove any legal or regulatory uncertainty that could create the unnecessarily turbulent environment for cryptocurrency development and sales, and the “additional steps” Congress should take.
Senator Scott also questioned what the government is “doing to protect cryptocurrency markets from foreign interference from our opponents, including Communist China and Russia.” In addition, the Senator would like to know “which instruments are available to the administration to offer investors and innovators more concrete protection and more concrete guidance on these issues”.
Yellen herself has raised concerns about the use of cryptocurrencies in illegal transactions on several occasions. She previously said that cryptocurrency will be used primarily for illicit funding and pledged to work with other federal regulators to develop an effective regulatory framework for cryptocurrencies.
In February, the Treasury Secretary named cryptocurrency abuse a growing problem and stressed the importance of crypto regulation to ensure Bitcoin is not used in illegal transactions. She said the current legal framework is not up to the task of regulating cryptocurrencies. In the meantime, the Biden administration is reportedly working on increased cryptocurrency monitoring.
What do you think of Senator Scott calling on Treasury Secretary Janet Yellen to take steps to protect investors from cryptocurrency fraud? Let us know in the comments below.
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