A pro-crypto US senator has said 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, Republican Senator Cynthia Lummis of Wyoming said that the crypto industry could use some regulations to weed out fraudulent altcoins.
“Bitcoin will actually benefit from regulation, disclosure, and weeding out some of the bad actors. Because for some people, they don’t understand the difference between Bitcoin and an altcoin.
And there are plenty of altcoins that are just plain scams. These are scams. Thus, 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 within the digital asset industry would help the leading crypto asset by market cap realize its true potential to eventually become the new gold standard.
“As soon as more bad actors can be weeded out, the better it seeks Bitcoin due to its complete decentralization and qualities that make it digital gold. So regulation is actually good for bitcoin because out of all cryptocurrencies, bitcoin is going to emerge as the gold standard.
Citing his understanding of the significance of Ethereum’s (ETH) recent transition to a proof-of-stake consensus mechanism, Lummis said SEC Chairman Gary Gensler will play an important 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 adopt it, I think that there is very little understanding of how this may affect his more centralized approach.
One of the people who I think really understands this 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 that aims to create broad regulatory guidelines for the virtual asset industry.
Last week, Cardano (ADA) co-creator Charles Hoskinson said that if the bill were to pass, it would end the current crypto bear market and trigger a massive rally across the world. ‘industry.
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