1. United States
2. Wash.
3. Letter

The cryptocurrency industry has been plagued by a lack of transparency, accountability, and oversight, leading to rampant manipulation, fraud, and criminal activities. Instead of legitimizing this unregulated market, it is imperative that robust regulations are put in place to protect consumers and maintain the integrity of our financial systems. The unaudited nature of stablecoins like Tether, which form the backbone of crypto liquidity, raises serious concerns about potential money laundering and the sources of their reserves. Crypto exchanges operate with minimal consumer protections, enabling market manipulation tactics like wash trading. Furthermore, the inherent qualities of cryptocurrencies, such as the immutable public ledger, inadvertently facilitate criminal activities like sanctions evasion, ransomware attacks, and other illicit transactions. While proponents tout the "innovative" potential of blockchain technology, the reality is that after over a decade, it has failed to deliver any substantial, non-criminal applications that surpass existing solutions. The energy-intensive mining process and the negative-sum dynamics of cryptocurrencies raise questions about their overall societal benefit. Rather than granting legitimacy to an industry rife with issues, policymakers should prioritize establishing a comprehensive regulatory framework. This framework should include stringent auditing requirements for stablecoin reserves, robust anti-money laundering measures, consumer protection mechanisms for crypto exchanges, and measures to mitigate the environmental impact of mining operations. Only through such regulations can we curb the rampant criminality and ensure that any legitimate applications of blockchain technology operate within the boundaries of the law and ethical standards.