U.S. Sen. Cynthia Lummis (R-Wyo.) rebuffed Sen. Elizabeth Warren's (D-Mass.) claim that crypto is used for nefarious purposes. "Crypto is clearly not the problem," according to a post on X (formerly Twitter).
What Happened: Lummis quoted a snippet from a Congressional hearing at which Warren discussed the use of cryptocurrencies for money laundering, refuting the latter's claims cryptocurrencies were the main culprit:
$900 million in non-crypto (fiat currency) money laundering vs $900,000 in crypto money laundering.
— Sen. Cynthia Lummis (@SenLummis) January 23, 2024
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
This comes only a day after Warren cited a report that cryptocurrencies are used to undermine national security. The tweet prompted a harsh response from the cryptocurrency community and industry leaders.
Coinbase's Chief Legal Officer Paul Grewal saw "zero analysis whatsoever" performed.
Read Also: Bitcoin Experts Say Price Plunge To $39,000 Is 'Healthy For The Market': Here's Why
Why It Matters: Lummis had a long history of being friendly towards cryptocurrencies. Back in November 2023, she stated the Securities and Exchange Commission (SEC) "cannot continue ruling by enforcement," foreshadowing the eventual spot Bitcoin ETF approvals.
She was also on the record for calling Bitcoin BTC/USD "sound money."
Her latest post comes only a few days after a Chainalysis report found that more than 99% of on-chain cryptocurrency is used for legal purposes.
While the report does not differentiate how much cryptocurrency is used for money laundering in the real world, Lummis believed dismissing it for the mere possibility would be a "historic mistake."
What's Next: The SEC was still fighting lawsuits against Binance and Coinbase. The outcome of those will be a yardstick for how much the views of Lummis align with those of the judicial powers in the U.S.
Photo: Courtesy office of Sen. Lummis; Shutterstock
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