US Senator Rick Scott has written to Treasury Secretary Janet Yellen asking her to intervene in the cryptocurrency sector because of the many scams that are rampant.
In the letter, Rick Scott specifically tells Janet Yellen that he is concerned about the risks and scams associated with cryptocurrencies. Firstly, he notes, their value has plummeted dramatically in recent weeks, while reports on scams and fraud show that cases are soaring.
Specifically, the FTC research is reported as saying that cryptocurrency scams cost taxpayers $80 million a year (Elon Musk’s name scams are worth $2 million), for an average loss of $1,900 per taxpayer.
That’s why the senator is calling on Janet Yellen to act to:
“protect consumers and legitimate investors from widespread cryptocurrency scams”.
He also asks how the US Treasury Department intends to take action to prevent and identify scams and fraud in the buying and selling of cryptocurrencies by US users.
The same letter also asks how the US defends itself against interference from states such as Russia and China. Finally, Rick Scott asks whether there are any tools that can protect and guide investors in their choices.
Janet Yellen’s position on cryptocurrencies
It is well known that the new US Treasury Secretary of the Biden era cannot be described as crypto-friendly. On the contrary, Janet Yellen, while recognizing the opportunities of the cryptocurrency sector, has expressed concern about the misuse of crypto.
Scams and fraud are only part of what concerns Janet Yellen. The other major concern is that cryptocurrencies are being used to finance terrorism, against which the US is fighting a historic battle.
It seems that in the four years of the Biden era there will be a way to regulate the sector, given the pressure that seems to be coming from many sides. It will have to be seen whether excessively stringent rules will not put cryptocurrency-related activities in crisis, with consequences on prices.