A pro-crypto US senator said that Bitcoin (BTC) would benefit greatly if the US Securities and Exchange Commission (SEC) further regulates crypto assets.
In a new interview with Coin Stories host Natalie Brunel, Republican Senator Cynthia Loomis of Wyoming said the crypto industry could use some regulations to get rid of fraudulent altcoins.
Bitcoin will really benefit from regulation, disclosure, and the elimination of some bad actors. Because some people don’t understand the difference between bitcoin and altcoin.
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There are a lot of alternative currencies that are just simple scams. This is a hoax. Thus, they must be under the control and jurisdiction of the SEC. Because the SEC is really good at disclosure and consumer protection.
According to Lummis, regulations that get rid of bad actors in the digital asset industry will help the leading crypto assets by market capitalization realize their true potential to eventually become the new gold standard.
“Once we get rid of more bad actors, it would have been better to go for Bitcoin because of its complete decentralization and the qualities that make it digital gold. So regulation is really good for Bitcoin because of all the cryptocurrencies, Bitcoin will emerge as the gold standard.
Citing his understanding of the importance of Ethereum (ETH)’s recent transition to a proof-of-stake consensus mechanism, Lummis said SEC President Gary Gensler will play an important role in regulating crypto assets.
“While Ethereum has been touting the benefits of Proof of Stake, as opposed to Proof of Work, meaning that it is more environmentally friendly and people are starting to embrace it, I think there is very little understanding of how it might affect its more centralized approach.
One of the people that I think really understands this is Gary Gensler, Chairman of the Securities and Exchange Commission, and his voice on these issues will be important in this administration.
In June, Loomis, along with Democratic Senator Kirsten Gillibrand of New York, proposed the Financial Innovation Act, a bill aimed at setting broad regulatory guidelines for the virtual asset industry.
Last week, Charles Hoskinson, co-founder of Cardano (ADA), said that if the bill was passed, it would end the current bearish cryptocurrency market and lead to a massive rally around the world.
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