Cryptocurrency could do with a bit more regulation. Or at least that's what two US senators believe, as they are attempting amend a 2015 cybersecurity bill to include the controversial digital asset.
While many believe cryptocurrency to be a world-saving idea, the first decade of its existence has been rocky to say the least. From the ransomware scams that demand it to unlock information to the volatility causing many to lose millions, the unregulated nature of cryptocurrency has caused more problems than its solved.
Now, though, two US senators that have vocally supported cryptocurrency in the past want to see it more regulated, in hopes of lessening the inherent risks that come with its existence.
Senators Aim to Regulate Cryptocurrency
Senators Marsha Blackburn of Tennessee, and Cynthia Lummis of Wyoming have introduced new legislation, dubbed the Cryptocurrency Cybersecurity Information Sharing Act. This bill would act as an amendment to the Cybersecurity Information Sharing Act of 2015, which established practices that “enhanced sharing of information about cybersecurity threats” throughout the United States.
“Some bad actors have used cryptocurrency as a way to hide their illegal practices and avoid accountability. The Cryptocurrency Cybersecurity Information Sharing Act will update existing regulations to address this misuse directly. It will provide a voluntary mechanism for crypto companies to report bad actors and protect cryptocurrency from dangerous practices.” – Marsha Blackburn to TechCrunch
In essence, the new bill would create a system for crypto firms to more effectively flag potential security threats and quickly report them to the proper authorities.
As any early warning system does, this would help to lessen the risk of more nefarious online behavior, like security breaches and ransomware attacks. Suffice it to say, the bill puts a bit more accountability on those that use cryptocurrency, which probably isn't a bad thing at this point in the game.
Does Cryptocurrency Need More Regulation?
There's no denying that the majority of cryptocurrency's draw is the fact that it's decentralized and largely unregulated. Used properly, it can allow for a much more secure currency exchange system and allow for a wide range of other benefits.
Unfortunately, that has simply not been the case over the last few years. In fact, in 2022, cryptocurrency-based scams have skyrocketed, with one report stating that more than $2 billion has been lost to scams, a huge increase from 2021.
Even worse, the scams are often perpetrated via social media. Meta, the company that owns social media platforms like Facebook and Instagram, was recently chastised by the Federal Trade Commission (FTC) due to the fact that more than half of these crypto scams were being facilitated through its sites and apps.
Cryptocurrency isn't going anywhere, though, which highlights the necessity for more commonsense regulation. Employees want to be paid in crypto, ecommerce platforms are beginning to accept crypto, and the popularity continues to gain steam, even with the market having dipped in recent months.
All that to say that, yes, cryptocurrency needs to be more regulated if it hopes to attain the mainstream status users have hoped for all these years.