Sens.Elizabeth Elizabeth Warren and Roger Marshall are spearheading the effort to tighten crypto regulations in the US.
While many think that this is a political move timed well considering the scale of the FTX scandal,there is no denying that it will have an impact on the current stance of the Senate regarding the crypto industry and adjacent companies.
The current situation is quite tense
The chaos in the US government caused by the FTX collapse is something that many experts expected. The US government operates like an indecisive child at times.
It does not want to fix or address things until they go out of control and start wreaking havoc. It happened with literal hurricanes and it is happening right now with the crypto industry.
The current bill is being introduced just a day after the SEC releases its recommendations for companies involved with the crypto industry.
Senators want to expand the know-your-customer principle to companies that offer digital wallets, mining operators, validators, and other people who are actively involved with the crypto industry. If the bill passes, it will affect distributed ledger networks like the biggest blockchain network Ethereum.
Sen. Elizabeth Warren was quite vocal and said that all participants of the crypto industry must follow the same rules as other financial institutions and comply with currently accepted safety standards.
This bipartisan effort will significantly change the landscape of the financial world and create new obstacles on the way to nation-wide adoption.
Haters gonna hate…
Sens. Warren and Marshall are known for their aggressive stance toward cryptocurrencies and blockchain.
Sen. Warren has been talking about the environmental effect of these currencies and the strain they put on the power grid in places where mining facilities are allowed to operate. She is one of the most vocal proponents of strict crypto regulations.
It does make sense to ensure that US citizens have enough information about crypto assets and DeFi services before using them. However, if US Senators will focus on just tightening regulations, the nation will soon be dethroned as the biggest crypto hub.