With “pig butchering” scams depending on cryptocurrencies to defraud victims and launder the proceeds, policymakers must strengthen protections against the crypto sector, according to a new ICBA blog post.

Details: On Main Street Matters, ICBA Senior Vice President of Digital Assets and Innovation Policy Brian Laverdure writes that stablecoins like Tether are the preferred for payment mechanism for scammers, cyberfraud operations, and money launderers given their lack of anti-money-laundering or know-your-customer checks.

ICBA View: ICBA has responded by calling on policymakers to close the regulatory gaps found throughout the growing world of decentralized finance, with the persistent growth of pig butchering scams emphasizing the urgent need for U.S. and global intervention.

More: A previous blog post from Laverdure details the “pig butchering” scam, which has skyrocketed in recent years as criminal syndicates target consumers through online channels.