Sen. Richard Blumenthal has renewed his criticism of the cryptocurrency industry.
In a Thursday post on X, he stated that "crypto is the currency of choice for crooks" while commenting on the testimony of a victim of a multimillion-dollar romance scam.
The Connecticut Democrat shared the remarks on X following a Senate forum featuring Lori Flowers, a pharmaceutical account executive who testified that she lost much of her savings in a 2022 romance scam.
According to Flowers, the fraudsters relied on crypto to move funds quickly and irreversibly.
Earlier this week, the senator convened a Capitol Hill forum, where he argued that cryptocurrency scams and fraud are expanding because digital assets make laundering stolen funds easier. He also warned that the Senate's CLARITY Act would weaken enforcement by limiting the role of state attorneys general.
Opposing the Clarity Act
Blumenthal is one of several Senate Democrats opposing the Republican-backed CLARITY Act, which is meant to create a clear regulatory framework for digital assets. He has criticized the bill for what he describes as inadequate ethics safeguards.
His position is in line with broader resistance among Senate Democrats. Ranking Banking Committee member Elizabeth Warren has called the latest version of the CLARITY Act "riddled with massive loopholes."
Sen. Chris Van Hollen and Sen. Lisa Blunt Rochester have likewise opposed the legislation, saying it does not sufficiently protect consumers.
Targeting crypto ahead of the midterms
As reported by U.Today, progressive lawmakers have intensified their rhetoric against the industry. Independent socialist Sen. Bernie Sanders recently vowed to "take on crypto" alongside the AI industry during a Minnesota campaign event. Sen. Warren has similarly criticized the growing influence of crypto-focused political action committees.
Crypto-backed super PACs, including Fairshake and its affiliated organizations, have become some of the largest financial players in American politics.
Dan Burgin
U.Today Editorial Team
