Since the beginning of 2021, the pressure on the cryptocurrency industry has been constantly increasing. The politicians of the United States have now started questioning the regulators about the current regulatory framework surrounding cryptocurrencies.
They are demanding to know whether the current regulatory infrastructure around cryptocurrencies is viable and adequate or not. This is because the cryptocurrency industry has become a major source for the bad actors to adopt and get away with huge heists.
However, a former head of the Securities and Exchange Commission of the United States has jumped in to defend US crypto regulations. Jay Clayton, former SEC Chairman has talked about the about cryptocurrency industry and its current regulatory framework in the country.
Clayton was also accompanied by Brent McIntosh, US Treasury’s former Undersecretary. Both of them claimed that the current cryptocurrency framework in the United States is to the point and adequate. If more amendments or strict regulations are introduced in the current regulations, the situation would get out of control.
The new regulations would become too stifling for the entire cryptocurrency industry in the country. As a result, the industry would be given no breather or enough ground to expand and advance. New and stricter regulations in the cryptocurrency industry in the United States would hamper innovation and adoption in the country surrounding cryptocurrencies.
The cryptocurrency industry has ended up finding itself in the spotlight due to the recent hack and ransomware occurrences. In the past, things were under control until hackers started targeting governmental industries.
In all of the attempts, the hackers have demanded to get paid in the form of cryptocurrencies. This has again resulted in cryptocurrencies coming under a lot of firepower and scrutiny from the regulators’ end. Now the industry is being closely monitored by the politicians who are the big guns with authority to question the adequacy of regulations.
Just recently, there were two major ransomware attempts that took place in the United States. The first one was on a pipeline company and the other one was on the world’s largest meat manufacturing company. Both ransomware demands were to be paid in the form of cryptocurrencies.
Now the senators in the United States are growing concerned about the usage of cryptocurrencies. The report suggests that a couple of congressmen have recently proposed a bill at the senate. In the bill, the senators have demanded to ban cryptocurrencies for good so they cannot be used to pay for ransomware in the future.
The pair have requested the current regulatory authorities to be very mindful when going through the crypto regulations. They need to ensure that they keep the factor of balance within the regulatory framework so it ensures full protection for consumers under complete regulatory compliance.