Crypto Is Not The Problem, Bad Actors Are – Sen. Lummis

• In a recent disagreement, Sen. Lummis declared that crypto is clearly not the problem but criminals and bad actors are.

Discord regarding Bitcoin and cryptocurrencies persists between U.S. lawmakers after a year of growth for global adoption and the coming of spot BTC ETFs.

Senator Cynthia Lummis disagreed with her fellow Senator Elizabeth Warren following comments from the latter over illicit wealth funneled through cryptocurrencies by criminals worldwide. 

$900 million in non-crypto (fiat currency) money laundering vs $900,000 in crypto money laundering.

Crypto is clearly not the problem. Criminals and bad actors are.

It would be a historic mistake to crush an entire emerging industry based on incorrect data. https://t.co/TEFEdvGG0o

— Senator Cynthia Lummis (@SenLummis) January 23, 2024

Sen. Warren pointed to a single case of $900,000 laundered by the notorious Sinaloa Cartel using digital assets supported by blockchain technology. 

Warren cited the matter while arguing for stricter measures on crypto and virtual currencies due to the widespread illegal activities carried out via these emerging assets.

See Also: The Role Of Crypto In The Forthcoming US Elections: Former US SEC Official John Reed Stark

However, as Lummis highlighted, Warren failed to mention nearly $1 billion in money laundering operations masterminded by the same cartel in previous years. 

This $900 million of criminal cash was filtered through monetary systems using fiat currencies.

The data contradicts Warren’s claims that crypto is the primary channel for money laundering and criminal financing. 

Senator Cynthia Lummis said, 

“Crypto is clearly not the problem. Criminals and bad actors are. It would be a historic mistake to crush an entire emerging industry based on incorrect data.”

Chainalysis noted a 39% drop in illicit crypto transactions received throughout 2023. 

Despite this decrease amounting to $24.1 billion, reports show that criminal activity tied to cryptocurrencies also declined below 0.35%, indicating a shift in asset preference for bad actors. 

Global crypto usage increased by 34% in the same year, with over $580 million individuals around the world holding some form of cryptocurrency. 

In the US, this has meant more scrutiny of digital assets as watchdogs like the Securities and Exchange Commission sued a basket of crypto businesses and operators for alleged violations. 

The regulator has cases against Binance and Coinbase, the largest crypto exchanges. 

See Also: Does Coinbase Has A High Chance Of Winning The SEC Case?

Coinbase, in particular, has promised to pursue litigation against the SEC for the regulator’s refusal to provide comprehensive and clear guidelines for compliant digital asset service providers.