Regulatory Framework for Cryptocurrency Sector Explored at Senate Banking Committee Hearing
The cryptocurrency sector has rebounded this year as its market capitalization returned above $1 trillion. Bitcoin prices have rallied more than 30 percent, Ethereum has risen 29 percent, and even Dogecoin has surged close to 20 percent.
But, according to U.S. lawmakers and regulators, the damage has been done to consumers and investors during last year’s crypto winter, and regulations must be adopted to prevent another situation of malfeasance like FTX, Alameda Research, and the Sam Bankman-Fried.
The Senate Committee on Banking, Housing, and Urban Fairs held a hearing titled, “Crypto Crash: Why Financial System Safeguards Are Needed for Digital Assets.”
Time for Crypto Regulations?
Sen. Sherrod Brown (D-Ohio), who is also the committee chairman, repeated the same concerns that governments and central banks espoused a decade ago: cryptocurrencies can be used for illicit activities, such as drug running and human trafficking, and can lead to fraudulent activity….