Bitcoin Will Benefit If SEC Moves To Regulate Crypto Assets, Says US Senator Cynthia Lummis – Here’s Why
A pro-crypto US senator says Bitcoin (BTC) would benefit greatly if the US Securities and Exchange Commission (SEC) further regulates crypto assets.
In a new interview with Coin Stories host Natalie Brunell, Wyoming Republican Senator Cynthia Lummis says the crypto industry could use some regulation to weed out fake altcoins.
“Bitcoin will actually benefit from having some of the bad actors regulated, exposed and out of the picture. Because for some people, they don’t understand the difference between Bitcoin and an altcoin.
And there are many altcoins that are just fraudulent. They are scams. 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 actors in the digital asset industry will help the top crypto asset by market cap realize its true potential to eventually become the new gold standard.
“As soon as more of the bad actors can be dismissed, the better things look for Bitcoin because of its complete decentralization and the properties that make it digital gold. So regulation is actually good for Bitcoin because, among all the cryptocurrencies, Bitcoin is going to emerge as the gold standard.”
Citing her understanding of the importance of Ethereum’s (ETH) recent move to a proof-of-stake consensus mechanism, Lummis says SEC Chairman Gary Gensler will play an important role in regulating cryptoassets.
“Although Ethereum has been touting the benefits of being a proof of stake – as opposed to a 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 of how that could affect its more centralized approach.
One of the people that I think really understands that is Gary Gensler, who is the head of the SEC, and his voice on these issues is going to be important in this administration.”
In June, Lummis, along with Democratic Senator Kirsten Gillibrand of New York, proposed the Financial Innovation Act, a bill aimed at creating broad regulatory guidelines for the virtual asset industry.
Last week, Cardano (ADA) co-creator Charles Hoskinson said that if the bill were ever to pass, it would end the current crypto bear market and trigger a massive industry-wide rally.
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