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

U.S. Senator Rick Scott has urged Treasury Secretary Janet Yellen to take motion on cryptocurrency scams, which he mentioned have risen 1,000% up to now yr and price customers at the very least $80 million. “That is an unregulated business, and the alarming quantity of felony 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 at the moment with concern in regards to the dangers taken by peculiar buyers and the numerous potential for scams associated to cryptocurrency.

He defined that “Cryptocurrency values have fallen drastically over the previous few weeks, whereas reports of scams and fraud have skyrocketed.” Senator Scott cited analysis by the Federal Commerce Fee (FTC) stating that cryptocurrency scams have risen 1,000% up to now yr and price customers greater than $80 million, with the median quantity customers misplaced within the scams of $1,900.

He continued:

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

In his letter, the senator requested how the administration plans to “defend customers and legit buyers from widespread cryptocurrency scams” and the way the Treasury Division will “establish, 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 which may be inflicting the unnecessarily turbulent surroundings for the event and sale of cryptocurrency” and what “extra steps” Congress ought to take.

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

Yellen has herself voiced issues on a number of events over the usage of 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 effective regulatory framework for cryptocurrencies.

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

What do you consider Senator Scott asking Treasury Secretary Janet Yellen to take motion to guard buyers in opposition to cryptocurrency scams? Tell us within the feedback part under.

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