The Chairman of the United States Banking Committee, Sherrod Brown, has suggested that the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) should perhaps consider a ban on cryptocurrencies.
Brown’s comments were made during a December 18 appearance on the show “Meet the Press“NBC’sthough the senator was quick to add that a ban would be difficult to enforce:
“We want them to do what they have to do at the same time, maybe ban it, although this is very difficult because it would go to tax havens, and who knows how it would work.”
In response to an earlier question from the host about Sen. Jon Tester who believes cryptocurrencies should be banned, Brown said he shares “the same thought.”
The Ohio representative said that for the past 18 months he has been “educating” his colleagues and the public about the dangers of cryptocurrencies, and that he has called for imminent and aggressive action.
“I have already addressed the Treasury and the Secretary and have called for a whole-of-government assessment through all the various regulatory agencies [….] The SEC has been particularly aggressiveand we have to move forward that way and legislatively if it comes to that,” he added.
Brown cited the resounding collapse of FTX as an example of why a ban may be worth considering, but added that “it’s just a huge part of this problem.”
He argued that cryptocurrencies are “dangerous” and a “threat to national security,” citing North Korean cybercriminal activity, drug trafficking, human trafficking and terrorist financing as some of the problems they have exacerbated.
The Chairman of the Banking Committee has been expressing skepticism towards cryptocurrencies for over a year now, and has recently raised concerns about the issuance of stablecoins and cryptocurrency advertising and marketing campaigns.
Brown released a statement on November 30 calling for an “all-of-government” approach to regulating the industry.and on December 13, he applauded the US Department of Justice for filing criminal charges against former FTX CEO Sam Bankman-Fried, who is currently behind bars in the Bahamas awaiting extradition to the US. Uh ..
I applaud the @TheJusticeDept and the Bahamian authorities for holding Sam Bankman-Fried accountable.
The @SenateBanking and Housing Committee will continue working to uncover crypto’s risks to consumers, our financial system, and our national security. https://t.co/dsSJ09PzYx
—Sherrod Brown (@SenSherrodBrown) December 13, 2022
I applaud @TheJusticeDept and the Bahamian authorities for holding Sam Bankman-Fried accountable. The @SenateBanking and the Housing Commission will continue to work to uncover the risks of cryptocurrency to consumers, our financial system, and our national security.
Not all of Senator Brown’s peers seem to share his thoughts.
The senator Tom Emmer stated on Nov. 23 that the FTX crash was not a “crypto failure” but a failure caused by centralized players.
Emmer also believes that crippling regulation would stifle innovation in the US industry, causing it to lose its position of global market dominance.something that many believe is already taking place.
It should also be noted that the incoming chairman of the House Financial Services Committee, Patrick McHenry, is pro-crypto.. This week he called for a postponement of the cryptocurrency tax changes in order to get more clarification on the original tax provision, which he says is “poorly drafted.”
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