WASHINGTON, D.C.—Benjamin Schiffrin, Director of Securities Policy, issued the following statement in connection with Better Markets’ new Fact Sheet, “A Golden Age of Crypto Crime?” released ahead of a House Financial Services Committee hearing “A Golden Age of Digital Assets: Charting a Path Forward”:

“Tomorrow, Congress will hold a hearing dedicated to crypto. The hearing is likely to cover how crypto should be regulated. But lost in the discussion is why crypto must be regulated.

“As our new fact sheet shows, crypto crime likely broke records in 2024. Some reports estimate that the total amount received by illicit cryptocurrency addresses will be over $50 billion. Regardless, 2024 was already the third consecutive year where the total cryptocurrency value received by illicit addresses exceeded $40 billion. Congress’s hearing is entitled “A Golden Age of Digital Assets.” But if Congress allows crypto to be subject to a lax regulatory regime, it risks ushering in a Golden Age of Crypto Crime.

“The crypto industry is already full of fraudulent, unlawful, illegal, and criminal behavior. Ransomware plagues U.S. cities and towns and prevents their residents from receiving basic services. Meme coins have become a paradise for gamblers and grifters. Con artists dupe retirees into transferring their life savings into illegitimate crypto accounts, including through the use of bitcoin ATMs. The hacking of investors’ crypto accounts continues to proliferate, and market manipulation and wash trading remain rampant in the crypto space.

“As these examples show, hardworking Americans are the ones who suffer from crypto’s criminal behavior. These Americans don’t have millions of dollars to donate to political campaigns, unlike the millions of dollars the crypto industry spent in the 2024 election. But they are the ones at risk from the predators who pervade the crypto sector. Congress needs to ensure that any regulatory regime for crypto protects these Americans.”

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