A pro-crypto US Senator says that Bitcoin (BTC) would greatly benefit if the U.S. 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 says that the crypto industry could use some regulations to shed fraudulent altcoins.
“Bitcoin will actually benefit by having some of the bad actors regulated, disclosed and out of the scene. Because for some people they don’t understand the difference between Bitcoin and an altcoin.
And there are a lot of altcoins that are just fraudulent. They are scams. So, they should be under the control and jurisdiction of the SEC. Because the SEC really is good at disclosure and consumer protection.”
According to Lummis, regulations that weed out bad actors within the digital assets industry would help the top crypto asset by market cap realize its true potential of eventually becoming the new gold standard.
“As soon as more of the bad actors can be dismissed, the better it looks for Bitcoin because of its complete decentralization and the qualities 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 transition to a proof-of-stake consensus mechanism, Lummis says SEC Chair Gary Gensler will play an important role in regulating crypto assets.
“While Ethereum has touted the advantages of being a proof-of stake-as opposed to proof-of-work, and that means it’s environmentally more friendly and people begin to embrace it, I think that there’s very little understanding of how that can affect its more centralized approach.
One of the people who I think really understands that is Gary Gensler, who’s the head of the SEC, and his voice on these issues is going to be important within this administration.”
In June, Lummis, along with Democrat Senator Kirsten Gillibrand of New York, proposed the Financial Innovation Act, a bill that aims to create broad regulatory guidelines for the virtual assets industry.
Last week, Cardano (ADA) co-creator Charles Hoskinson said that if the bill were to ever be passed, it would end the current crypto bear market and spark a massive industry-wide rally.
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