U.S. Consultant Brad Sherman says Congress has not banned crypto as a result of “there’s an excessive amount of cash and energy behind it.” He elaborated: “Cash for lobbying and cash for marketing campaign contributions works, or folks wouldn’t do it, and that’s why we haven’t banned crypto.”
US Lawmaker on Regulation and Why Congress Gained’t 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 safety, needs to outlaw cryptocurrency however doesn’t imagine Congress will take such motion. “I don’t suppose we’re going to [ban crypto] anytime quickly,” he informed the information outlet.
“Cash for lobbying and cash for marketing campaign contributions works, or folks wouldn’t do it, and that’s why we haven’t banned crypto,” Sherman defined, elaborating:
We didn’t ban it originally as a result of we didn’t understand it was essential, and we didn’t 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 particular person traders being defrauded, however he additionally views cryptocurrency as a risk to the nationwide safety of the U.S. He believes crypto poses a systemic risk, allows criminals, and undermines the U.S. greenback’s dominance.
The lawmaker is especially anxious about crypto mixing providers like Twister Money. In August, the U.S. Treasury Division’s Workplace of Overseas Asset Management (OFAC) banned the Ethereum mixing software, claiming that the mixer has helped North Korean hackers such because the hacking syndicate often called Lazarus Group.
Sherman admitted that there’s little he can do to cease traders from spending their cash recklessly. “It’s laborious to be operating the subcommittee devoted to investor safety in a rustic in which individuals need to wager on [meme coins],” the U.S. lawmaker opined, asserting:
Cryptocurrency is a meme you make investments in, in the hopes which you could promote it to any person else earlier than it tanks. That’s the great factor a few Ponzi scheme.
Sherman proceeded to debate crypto regulation absent a ban. Liken crypto to a inventory or safety, he believes that the Securities and Trade Fee (SEC) ought to oversee the crypto sector, citing the regulator’s dimension, experience, and aggressive enforcement actions.
Nevertheless, three payments have been launched in Congress this yr to make the Commodity Futures Buying and selling Fee (CFTC) the first regulator of the crypto trade.
In July, Sherman urged the SEC to go after main crypto exchanges that traded XRP. The securities watchdog stated in January that it had taken 97 crypto-related enforcement actions. In Could, the regulator stated it practically doubled the scale of its crypto enforcement unit.
What do you concentrate on the feedback by U.S. Rep. Brad Sherman? Tell us in the feedback part beneath.
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