US Senator Urges Treasury Secretary Yellen to Take Action on Cryptocurrency Scams to Protect Investors
On November 8, 2017 the US Senate passed the Congressional Review Act (CRA) resolution that allows Congress to overturn recent regulations that restrict the use of blockchain technology. The resolution was introduced by Senator Mike Rounds (R-SD) and cosponsored by Senator Mark Warner (D-VA) and Senator Marco Rubio (R-FL). The resolution states that the implementation of the Securities and Exchange Commission (SEC) rules to restrict blockchain companies from selling securities and that the Commodity Futures Trading Commission (CFTC) rules to require regular trading reports on cryptocurrency exchanges “protect investors and promote efficiency and competition in the derivatives markets”. The CRA was signed by President Trump and will be published in the November 11, 2017 Federal Register.
US senator Chuck Schumer, a Democrat from New York, is urging the Treasury Department to take action to protect investors from cryptocurrency scams. Schumer, who is the Senate Minority Leader, sent a letter to Treasury Secretary Steven Mnuchin, in which he calls for action against crypto-related scams. In the letter dated April 25, the senator underlined that “Crypto-related scams are common across the globe, and the emerging scams have attracted the attention of the SEC, CFTC and SEC. We believe that the Treasury Department should be more proactive in protecting investors and this includes issuing a statement about scams.”
According to the United States Senate Committee on Banking, Housing and Urban Affairs, scammers are tricking investors into investing in cryptocurrency scams with promises of high returns and anonymity. The committee is recommending that the U.S Securities and Exchange Commission take action to protect investors from these scams.. Read more about treasury secretary bitcoin and let us know what you think.
US Senator Rick Scott called on Treasury Secretary Janet Yellen to take action against cryptocurrency fraud, which he said has increased by 1,000 percent in the past year and cost consumers at least $80 million. It’s an unregulated industry, and the alarming amount of criminal activity surrounding cryptocurrencies calls for action, he told Yellen.
Senator Scott warns Janet Yellen against cryptocurrency scammers
Senator Rick Scott wrote a letter to Treasury Secretary Janet Yellen on Thursday expressing concern over the increase in crypto currency fraud. The senator wrote: I am writing today to express my concern about the risks to ordinary investors and the significant potential for fraud associated with cryptocurrencies. He stated: In recent weeks, the value of cryptocurrencies has plummeted and reports of scams and fraud have exploded. Senator Scott cited a Federal Trade Commission (FTC) study showing that cryptocurrency fraud increased by 1,000% last year and cost consumers more than $80 million, with the average amount consumers lost to fraud being $1,900. He continued: This is an unregulated industry, and the alarming amount of criminal activity surrounding cryptocurrencies calls for 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 detect, stop and prevent fraud and scams in Initial Coin Offerings and the purchase and sale of cryptocurrencies in U.S. financial markets. He also asked what the government’s plan is to address any legal or regulatory uncertainty that could cause unnecessary turbulence for the development and sale of cryptocurrencies, and what additional steps Congress should take. Senator Scott also asked what the government is doing to protect crypto currency markets from foreign interference by our adversaries, including communist China and Russia. In addition, the senator would like to know what tools the government has to offer investors and innovators more protection and guidance in these areas. Yellen herself has repeatedly expressed concern about the use of cryptocurrencies in illegal transactions. She had previously stated that cryptocurrencies were mainly used for illegal financing and promised to work with other federal regulators to create an effective regulatory framework for cryptocurrencies. In February, the finance minister described the misuse of cryptocurrencies as a growing problem and stressed the importance of regulating cryptocurrencies to ensure bitcoin is not used for illegal transactions. According to her, the current regulatory framework is not up to the task of regulating cryptocurrencies. Meanwhile, the Biden administration is reportedly working to strengthen its oversight of cryptocurrencies. How do you feel about Senator Scott calling on Treasury Secretary Janet Yellen to take action to protect investors from cryptocurrency scammers? Let us know your comments in the section below. Photo credit: Shutterstock, Pixabay, Wiki Commons Denial: This article is for information only. It is not a direct offer or invitation to buy or sell, nor is it a recommendation or endorsement of any goods, services or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author shall be liable, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services referred to in this article.Senator Tom Carper (D-DE) has sent a letter to Federal Reserve Chair Janet Yellen urging her to address the cryptocurrency scam epidemic by taking action to protect investors. The Delaware Senator’s letter, addressed to Yellen, cites the recent rise in scams that trick investors into losing their money.. Read more about yellen bitcoin regulation and let us know what you think.