“In his op-ed "Unregulated Crypto Is an Invitation for Criminals" (Jan. 2), Thomas P. Vartanian justifies his call for crypto businesses to be "comprehensively regulated" by mischaracterizing their products as primarily instruments of illicit finance, seemingly "born to facilitate crime."
That narrative confuses the medium with its misuse.
Many commercial crypto activities should be regulated -- not because they're dominated by criminals but to provide consumers and businesses with security and to enable this nascent technology to flourish in the U.S. under clear and constructive rules.
It's true that some criminals use cryptocurrencies. But far more exploit traditional financial instruments such as cash, securities and wire transfers. The scales aren't close. According to the U.N. Office on Drugs and Crime, illicit transactions in traditional finance make up 2% to 5% of global gross domestic product. According to Chainalysis, in 2024, 0.14% of crypto transactions, or about $50 billion, were illicit.
Cryptocurrencies are actually ill-suited for major criminal enterprises because transactions are permanent, immutable and traceable. Law enforcement has become increasingly sophisticated at analyzing blockchain patterns, enabling asset seizures and prosecution.
Mr. Vartanian also understates the importance of blockchain technology when he acknowledges that "cryptocurrencies and blockchain products have brought efficiencies and advances to payment systems" -- faint praise that undersells what is happening in global finance.
The world's largest financial institutions are racing to build on it. JPMorgan launched JPM Coin, a tokenized deposit product directly available on public blockchains. BlackRock's tokenized money market fund enables 24/7 settlement and collateral movement. Visa and other payment giants are building stablecoin rails. Even illiquid assets -- real estate, fine art, commodities -- are being fractionalized and traded with unprecedented efficiency. These aren't marginal improvements. They represent the wholesale reconstruction of financial infrastructure.
This transformation demands a forward-looking regulatory framework. Congress has begun this work with the Genius Act, which provides a comprehensive stablecoin regime. Early this year it ought to pass a market-structure bill -- such as Rep. French Hill's Clarity Act -- that assigns clear primary regulatory responsibilities, establishes registration requirements for issuers and intermediaries and creates standards to prevent illicit activity while fostering innovation.
Fortunately Washington recognizes that America's prosperity depends on enabling technological innovation under fair, well-defined rules. The question isn't whether to regulate crypto but whether we will lead the world in doing it right.
Pat Toomey
Zionsville, Pa.
Mr. Toomey served as a U.S. senator from Pennsylvania, 2011-23.” [1]
1. How to Get Cryptocurrency Regulation Right. Wall Street Journal, Eastern edition; New York, N.Y.. 14 Jan 2026: A14.
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