US Consultant Brad Sherman mentioned Congress did not ban crypto as a result of “there’s an excessive amount of cash and energy behind it.” He defined, “Cash for lobbying and cash for marketing campaign contributions works, in any other case folks would not, and that is why we did not ban crypto.”
US Lawmakers on Regulation and Why Congress Will not Ban Crypto
Congressman Brad Sherman (D-CA) shared his views on cryptocurrency and its regulation in an interview with the Los Angeles Instances, revealed Sunday.
The U.S. lawmaker from California, who chairs a Home subcommittee on investor protections, needs to ban cryptocurrency however does not suppose Congress will take such a step. “I do not suppose we’re going [ban crypto] anytime quickly,” he informed the outlet.
“Cash for lobbying and cash for marketing campaign contributions works, in any other case folks would not do it, and that is why we did not ban crypto,” Sherman defined, elaborating:
We did not ban it in the beginning as a result of we did not realize it was necessary, and we did not ban it now as a result of there’s an excessive amount of cash and energy behind it.
Not solely is the congressman involved about fraud by particular person buyers, however he additionally views cryptocurrency as a menace to US nationwide safety. He believes crypto poses a systemic menace, empowers criminals, and undermines the dominance of the US greenback.
Lawmakers are significantly involved about crypto mixing providers like Twister Money. In August, the US Treasury Division’s Workplace of International Asset Management (OFAC) banned the Ethereum mixer app, saying the mixer had helped North Korean hackers such because the hacking syndicate referred to as Lazarus. Group.
Sherman admitted there was little he may do to cease buyers from spending their cash recklessly. “It’s troublesome to steer the sub-committee devoted to investor safety in a rustic the place folks wish to guess on [meme coins]mentioned the US lawmaker, saying:
Cryptocurrency is a meme that you just spend money on, hoping you may promote it to another person earlier than it crashes. That is the advantage of a Ponzi scheme.
Sherman then mentioned regulating crypto within the absence of a ban. Evaluating crypto to a inventory or a safety, he believes the Securities and Change Fee (SEC) ought to oversee the crypto trade, citing the regulator’s measurement, experience and aggressive enforcement actions.
Nonetheless, three payments have been launched in Congress this 12 months to make the Commodity Futures Buying and selling Fee (CFTC) the first regulator of the crypto trade.
In July, Sherman urged the SEC to sue main crypto exchanges that traded XRP. The securities watchdog mentioned in January that it had taken 97 crypto-related enforcement actions. In Could, the regulator mentioned it almost doubled the dimensions of its crypto enforcement unit.
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