Raja Krishnamoorthi has recently voiced out the challenges he observed around the cryptocurrency industry on crypto scams. So, he has asked the agencies charged with regulating crypto services to take swift investigative action into the matter. Some of the departments he contacted are Gary Gensler – Securities and Exchange Commission Chair, Janet Yellen – Treasury Secretary, Lina Khan – Trade Commission Chair and Ristin Behnam – Commodity Futures Trading Chair.
Senator Imposes Prompt Action On Cryptocurrency Exchanges Regarding Scams
According to Raja, fraudsters are taking advantage of people’s drive to invest their funds in cryptocurrency. Having filled themselves with a get-rich-quick mindset, not minding how vulnerable it could make them.
Furthermore, adding that the decentralized nature of digital assets, the inability to trace a transaction, the lack of oversight, and shallow comprehension of the predominant concept of coins and tokens make for an effortless performance of fraudulent acts within the space. Hence, he has asked exchanges including Binance, Coinbase, Kucoin, FTX, and Kraken to take preventive measures to curb the continuous event of these outrageous acts, giving them till September 12 for feedback.
Another aspect Raja addressed was the area of phony investment programs. He affirmed that despite the increasing rate of cryptocurrency investment fraud, the administrators of the United States exhibits no interest in putting a stop to the evil.
A report by the Federal Trade Commission revealed that over $1 billion was defrauded people over the past months. Also, FTX reported that $575 million got lost to fake investment schemes in 2021. Yet, the US government is doing nothing regarding the issue.
Krishnamoorthi went further to say that the absence of clear regulations covering how activities that apply to cryptocurrency are carried-out will cause incessant failures of platforms to protect their users.
Victims of scams expressed their anger after the congressman posted on Twitter that agencies have begun working on putting measures in place to safeguard them. One of the replies to his post declared crypto a pyramid scheme.
Decentralized Finance Platforms Attract Attention
While actions are in motion to block open holes via which scammers can crawl out to target people, the agencies involved in restricting the occurrence of such incidence continue assessing possible ways these fraudsters can attack naïve investors. One of the means they spotted was through DeFi.
DeFi started gaining ground due to the expansion of the crypto industry. As more people prefer resorting to digital assets in executing transactions and other stuff they work for, it fosters wider acknowledgment of these tokens and coins. Decentralized Finance coins and tokens are known to be attractive to investors lately.
For this reason, the FBI, Exchanges, and the committee commissioned to look-into virtual frauds have shown interest in monitoring DeFi platforms. And this is to prevent the potential occurrence of users getting ripped while exploring the space. The government and its agencies are working hard to ensure cryptocurrency does more good than harm to individuals looking to invest their time, energy, and money in the industry.