Bitcoin Will Benefit as SEC Moves to Regulate Crypto Assets, Says US Senator Cynthia Lummis — Here’s Why
A crypto-friendly US Senator says Bitcoin (BTC) would benefit greatly if the US Securities and Exchange Commission (SEC) continued to regulate crypto assets.
In a new interview with Coin Stories host Natalie Brunell, Wyoming Republican Sen. Cynthia Lummis says the crypto industry could use some regulations to ban fraudulent altcoins.
“Bitcoin will actually benefit from some of the bad actors being regulated, exposed and wiped out. Because some people don’t understand the difference between bitcoin and an altcoin.
And there are many altcoins that are simply fraudulent. You are cheating. So they should be under the control and jurisdiction of the SEC. Because the SEC is really good at disclosure and consumer protection.”
According to Lummis, regulations that weed out bad players within the digital asset industry would help the leading crypto asset by market cap realize its true potential of eventually becoming the new gold standard.
“Once more of the bad actors can be fired, things are looking up for Bitcoin because of its full decentralization and the qualities that make it digital gold. So regulation is actually good for Bitcoin because Bitcoin will become the gold standard of all cryptocurrencies.”
Citing her understanding of the importance of Ethereum (ETH)’s recent transition to a Proof-of-Stake consensus mechanism, Lummis says SEC Chairman Gary Gensler will play a major role in regulating crypto assets.
“While Ethereum has touted the benefits of being proof-of-stake as opposed to proof-of-work, and that means it’s more environmentally friendly and people are starting to embrace it, I think there’s very little understanding for how that can impact its more centralized approach.
One of the people I think really understands this is Gary Gensler, the head of the SEC, and his voice on these issues will be important within this administration.”
In June, Lummis, along with Democratic Senator Kirsten Gillibrand of New York, proposed the Financial Innovation Act, a bill aimed at creating comprehensive regulatory guidelines for the virtual assets industry.
Last week, Cardano (ADA) co-founder Charles Hoskinson said that if the law were ever passed, it would end the current crypto bear market and spark a massive industry-wide rally.
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