Crypto likely won’t be banned ‘any time soon,’ says California Congressman
Congressman Brad Sherman, a well-known cryptocurrency skeptic, argued that the “money and power” backing the sector would prevent crypto from being banned at this time.
Sherman told The Times, “I don’t think we’re going to get it [to a ban] anytime soon.”
“Too much money and power” supporting crypto
“Money for lobbying and money for campaign contributions works, otherwise people wouldn’t do it, and that’s why we haven’t banned crypto. We didn’t ban it in the beginning because we didn’t realize it was important, and we didn’t ban it now because there’s too much money and power behind it,” the Democratic representative explained.
Sherman has consistently raised concerns about virtual digital assets, both for investors and the financial system at large, in hopes of getting them banned. Last year he stated: “Cryptocurrencies have the political support of patriotic anarchists who cheer tax evasion. I hope we shut it down.”
The crypto lobby engages with Washington
A local report published last year also revealed that the cryptocurrency sector would actually spend 2022 lobbying for legislative clarity through Congress.
Kristin Smith, CEO of the Blockchain Association had told Roll Call, “I think crypto got the message that they need to engage constructively with Washington, and they’re taking that seriously.”
However, the cryptocurrency lobby also has to deal with partisan policymakers.
Interestingly, Congressman Sherman’s stance is contrary to what Congressman Tom Emmer has been pushing in the bipartisan Blockchain Caucus. He too noted last December that cryptocurrency policy does not become biased even when it appears otherwise.
“Education is key to orange pilling, and the FSC’s latest crypto hearing reaffirmed that crypto remains partisan,” the Republican representative stated.
Divided policymakers prevent bipartisan cryptocurrency policy
The conflicting attitude of the decision-makers is also clear from the way they want to see the sector regulated. While rep. Sherman believes that crypto should be regulated through the Securities and Exchange Commission (SEC) because of the agency’s expertise, Senators Kirsten Gillibrand and Cynthia Lummis introduced the first major bipartisan legislation for crypto assets in June to be treated as commodities. under the CFTC.
Rep. Sherman also thinks crypto is a “Ponzi” scheme, as he notes, “It’s hard to lead the subcommittee dedicated to investor protection in a country where people want to bet [meme coins]. Cryptocurrency is a meme that you invest in, hoping that you can sell it to someone else before it tanks. That’s the beauty of a Ponzi scheme.”
The Economic and Consumer Policy Subcommittee of the US House Oversight Committee also demanded answers from regulators on how they would combat the many cryptocurrency scams that have plagued the industry.
Meanwhile, Congressman Sherman, who also chairs the House Financial Services Subcommittee on Investor Protection, is attending the Crypto Policy Symposium 2022 on September 5th and 6th.
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