US Lawmaker Says ‘Too Much Money and Power’ Behind Crypto-Ban – Regulation Bitcoin News

US Lawmaker Says ‘Too Much Money and Power’ Behind Crypto-Ban – Regulation Bitcoin News

US Representative Brad Sherman says Congress didn’t ban cryptocurrencies because “there’s too much money and power behind it.” He elaborated: “Lobbying money and campaign contribution money works, otherwise people wouldn’t do it, and that’s why we didn’t ban cryptocurrencies.”

US Lawmaker on Regulation and Why Congress Won’t Ban Crypto

Congressman Brad Sherman (D-CA) shared his views on cryptocurrency and its regulation in an interview with the Los Angeles Times, published on Sunday.

A US lawmaker from California, who chairs the House Subcommittee on Investor Protection, wants to ban cryptocurrencies, but doesn’t believe Congress will take such action. “I don’t think we will [ban crypto] soon,” he told the newspaper.

“Lobbying money and campaign contribution money works, otherwise people wouldn’t do it, and that’s why we didn’t ban cryptocurrencies,” Sherman explained, elaborating:

We didn’t ban it in the beginning because we didn’t realize it was important, and we haven’t banned it now because there’s too much money and power behind it.

Not only is the congressman concerned about defrauding individual investors, but he also views cryptocurrencies as a threat to US national security. He believes that cryptocurrencies are a systemic threat, enabling criminals and undermining the dominance of the US dollar.

The lawmaker is particularly concerned about cryptocurrency mixing services such as Tornado Cash. In August, the Office of Foreign Assets Control (OFAC) of the US Treasury Department prohibited an Ethereum mixing app, claiming that the mixer helped North Korean hackers such as the hacking syndicate known as the Lazarus Group.

Sherman acknowledged that there is little he can do to prevent investors from spending their money recklessly. “It’s hard to run subcommittees dedicated to protecting investors in a country where people want to bet on [meme coins]”, is the opinion of the American legislator, claiming:

A cryptocurrency is a meme that you invest in with the hope that you can sell it to someone else before it goes bust. That’s the good thing about a Ponzi scheme.

Sherman went on to discuss crypto regulation without a ban. Comparing crypto to a stock or security, he believes the Securities and Exchange Commission (SEC) should oversee the crypto sector, citing the regulator’s size, expertise and aggressive enforcement actions.

However, three bills were introduced in Congress this year to make the Commodity Futures Trading Commission (CFTC) the primary regulator of the crypto industry.

In July, Sherman urged SEC to go after major crypto exchanges that traded XRP. In January, the Securities and Exchange Commission said it seized 97 cryptocurrencies enforcement actions. The regulator said that in May almost doubled the size of its cryptocurrency enforcement unit.

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What do you think of US Representative Brad Sherman’s comments? Let us know in the comments section below.

US Lawmaker Says ‘Too Much Money and Power’ Behind Crypto-Ban – Regulation Bitcoin News

Kevin Helms

An Austrian economics student, Kevin discovered Bitcoin in 2011 and has been an evangelist ever since. His interests lie in bitcoin security, open source systems, network effects, and the intersection between economics and cryptography.




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