United States Representative Brad Sherman claims that Congress has not banned cryptocurrency because there is too much money and power behind them. He explained: “Money to lobby and money for campaign donations works, or people would not do it. That’s why we haven’t banned crypto.”
In an interview published Sunday by the Los Angeles Times (published Sunday), Congressman Brad Sherman (D, CA) spoke out about cryptocurrency regulation and his views in a conversation with them.
Investor protection committee want to ban crypto
California lawmaker and chair of a House subcommittee for investor protection, is keen to ban cryptocurrency, but isn’t convinced that Congress will do so. He told the news outlet that he didn’t believe Congress would ban crypto anytime soon.
Sherman elaborated, explaining that “Money for lobbying is necessary and money for campaign contributions are sufficient. It would not work, and that’s the reason we haven’t banned cryptocurrency.”
It wasn’t banned at the start because we didn’t know it was important. We also didn’t ban it now, because it’s too powerful and money-driven.
The congressman is not only concerned about defrauding individual investors, but also sees cryptocurrency as a threat for the U.S. national security. He believes that crypto is a systemic threat and that it enables criminals to undermine the U.S. dollar.
The lawmaker is especially concerned about crypto-mixing services such as Tornado Cash. The U.S. Treasury Department’s Office of Foreign Asset Control banned Ethereum mixing software, saying that it had helped North Korean hackers like the Lazarus Group hacking group.
Sherman acknowledged that there is not much he can do about investors spending their money in reckless ways. Sherman stated, “It is difficult to run the subcommittee for investor protection in a nation in which people want wager on [meme coin],” asserting:
Cryptocurrency is a ponzi scheme, apparently
Cryptocurrency can be described as a cryptocurrency you invest in the hope that it can be sold to someone else before it crashes. This is the beauty of a Ponzi scheme.
Sherman began to discuss the regulation of crypto without a ban. He likens crypto to a security or stock and believes the Securities and Exchange Commission should supervise the crypto sector. This is based on the regulator’s expertise and size and aggressive enforcement actions .
To make the Commodity Futures Trading Commission, (CFTC), the primary regulator for the crypto industry, three bills were introduced to Congress this year.
Sherman asked the SEC in July to pursue major crypto exchanges trading XRP. In January, the securities watchdog stated that it had taken 97 crypto-related enforcement actions. The regulator stated that it had almost doubled its crypto enforcement unit’s size in May.
