Utah Republicans Promote Crypto Freedom As ‘Innovation Is in Utah’s DNA’

Utah’s Republican senator Mike Lee promoted the Regulations from the Executive in Need of Scrutiny (REINS) Act at the Permissionless III conference, embracing crypto freedom.
However, the Kaspersky report reveals phishing attacks remain a serious concern. This issue calls for consumer protection and transparent regulations.
Scam Sniffer reports that attackers used Uniswap’s ‘permit2’ feature to scam out over $1.3M worth of crypto assets on Sunday.

Utah’s Republican senator Mike Lee and Republican congressman John Curtis defended crypto’s status at the Permissionless III crypto conference on Friday.

Read on to discover more about their views on crypto and the recent phishing attacks.

Crypto Regulation vs Innovation
Lee explained on Friday that crypto ‘is used as a medium of exchange’ without the need for banks. He promoted the REINS Act, attempting to limit crypto regulation as overregulation could stifle innovation in Utah’s financial sectors.

The REINS Act is a legislative proposal to increase administrative agency rulemaking oversight. Under the Act, any agency regulations with specific financial or economic impact will require legislative approval before they can take effect.

The Senator noted the current regulatory patchwork presents risks to the crypto sector. Businesses may seek alternative states to register as legal uncertainties may hinder investment. Lee also highlighted that central bank digital currencies (CBDCs) threaten future financial markets.

And I’ve represented the 3rd Congressional District, Silicone Slopes, I think innovation just is in Utah’s DNA, and I think that’s why it’s such a good home for crypto.John Curtis

According to Coinbase, Utah is among the top 10 American states in terms of the percentage of the population holding crypto.

Phishing Attacks Call for Consumer Protection
Excessive regulation may stifle innovation, but data suggests consumer protection laws are necessary. The Federal Trade Commission revealed that consumers lost over $1B to scams and frauds involving crypto from January 2021 to March 2022. Kaspersky prevented over 5M phishing attacks in 2022, a 40% year-on-year increase from just 3.59M in 2021.

In 2023, an Arbitrum address had scammed out over 630 crypto wallets with approximately 933,365 $ARB tokens.

Recently, Scam Sniffer reported that a meme coin investor lost $1.3M worth of crypto assets, including $PEPE, $MSTR, and $APU. The attackers quickly transferred the funds after the victim authorized a single Uniswap ‘permit2’ phishing signature.

Moving Forward
It’s important to set up a clear regulatory framework to combat crypto-related cyberattacks.

However, governments are trying to find a balance between transaction security and innovation in the crypto space.

Will the whole crypto landscape change after the US election? We’ll have to wait and see.

References
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