U.S. Consultant Brad Sherman says Congress has not banned crypto as a result of “there’s too much money and power behind it.” He elaborated: “Money for lobbying and money for campaign contributions works, or people wouldn’t do it, and that’s why we haven’t banned crypto.”

US Lawmaker on Regulation and Why Congress Received’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 think we’re going to [ban crypto] anytime soon,” he advised the information outlet.

“Money for lobbying and money for campaign contributions works, or people 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 understand it was necessary, 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 buyers 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 companies like Twister Money. In August, the U.S. Treasury Division’s Workplace of Overseas Asset Management (OFAC) banned the Ethereum mixing utility, 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 buyers from spending their cash recklessly. “It is hard to be running the subcommittee dedicated to investor protection in a country in which people want to wager on [meme coins],” the U.S. lawmaker opined, asserting:

Cryptoforex is a meme you spend money on, within the hopes you could promote it to anyone else earlier than it tanks. That’s the good factor a couple of 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.

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 business.

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 Could, the regulator mentioned it almost doubled the dimensions of its crypto enforcement unit.

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Kevin Helms

A scholar of Austrian Economics, Kevin discovered Bitcoin in 2011 and has been an evangelist ever since. His pursuits lie in Bitcoin safety, open-source techniques, community results and the intersection between economics and cryptography.

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