US Senators Elizabeth Warren and Cynthia Lummis have agreed on the need for a more defined cryptocurrency regulation. However, they are divided on the value of digital assets and their place in consumers’ portfolios. Both senators also debated on the fundamental value of Bitcoin.
Warren described purchasing Bitcoin as a bet on whether the ephemeral token will become less valuable or more valuable. Lummis, on the other hand, sees cryptocurrency transforming into a viable currency in the near future. She believes that Bitcoin will one day be a currency, but presently it’s just a commodity. But at some point, it will definitely become a means for payment, not right now, but it’s going to happen.
The senator of Massachusetts highlighted that a portion of the crypto industry welcomes regulation. And it’s mindful that with new rules come new responsibilities. Warren pointed out that the industry, somewhat, has to do things like the banks do – such as know your customer so as to keep away from drug money laundering or not helping people and businesses evade taxes, or not helping a country like Russia or Iran evade financial sanctions. It should be noted that the “more libertarian” wings of the industry want no regulation whatsoever.
Warren said there is another part of the crypto industry that wants to stay anonymous – nobody can tell who came on the system and what they are using the system for. But this means opening doors to money launderers, tax evaders, human traffickers, etc. Senator Lummis says there should be a balance. She is confident that Bitcoin will stand the test of time. However, she is not so confident about the other digital asset having the same qualities of permanence and complete decentralization.
There have been numerous cases of fraud, which time and again have pointed out the need for a regulatory framework that allows innovation. It should also protect individual privacy.