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 individuals 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 instructed the information outlet.
“Cash for lobbying and cash for marketing campaign contributions works, or individuals wouldn’t do it, and that’s why we haven’t banned crypto,” Sherman defined, elaborating:
We didn’t ban it firstly as a result of we didn’t notice 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 fearful about crypto mixing companies like Twister Money. In August, the U.S. Treasury Division’s Workplace of International Asset Management (OFAC) banned the Ethereum mixing utility, claiming that the mixer has helped North Korean hackers such because the hacking syndicate generally known as Lazarus Group.
Sherman admitted that there’s little he can do to cease traders from spending their cash recklessly. “It’s exhausting to be operating the subcommittee devoted to investor safety in a rustic through which individuals need to wager on [meme coins],” the U.S. lawmaker opined, asserting:
Cryptocurrency is a meme you put money into, within the hopes you could promote it to someone 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 Change Fee (SEC) ought to oversee the crypto sector, citing the regulator’s measurement, 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 mentioned in January that it had taken 97 crypto-related enforcement actions. In Might, the regulator mentioned it practically doubled the scale of its crypto enforcement unit.
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