Sen. Chuck Schumer says US risks losing crypto industry to foreign regulation

Sen. Chuck Schumer says US risks losing crypto industry to foreign regulation

Senator Chuck Schumer (D-NY) has warned that the United States risks losing its leadership in the cryptocurrency industry if it does not act to regulate the sector. In a speech to a town hall event hosted by the nonprofit group Crypto4Harris, Schumer said that "we cannot afford to continue to cede the crypto space to other countries." He argued that crypto firms could move to jurisdictions with lax regulation, and that inaction by the United States could give a "leg up to the extremists." Schumer's remarks come as the cryptocurrency industry is facing increased scrutiny from regulators around the world. The Securities and Exchange Commission (SEC) has been investigating several initial coin offerings (ICOs) for potential fraud, and the Internal Revenue Service (IRS) has been cracking down on cryptocurrency tax evasion. However, Schumer's speech suggests that he is open to working with the industry to develop a regulatory framework that protects consumers and investors while still allowing for innovation. "We need to find a way to regulate this space in a way that protects consumers and investors, but also allows for innovation," he said. "We cannot afford to let other countries take the lead in this space."