U.S. Rep. Brad Sherman says Congress didn’t ban crypto because “there’s too much money and power behind it.” He elaborated, “Lobbying money and campaign fundraising money works or people wouldn’t, and that’s why we didn’t ban crypto.”
US lawmakers on regulation and why Congress isn’t banning crypto
Congressman Brad Sherman (D-CA) shared his views on cryptocurrency and its regulation in an interview with the Los Angeles Times published Sunday.
The US lawmaker from California, who chairs a House of Representatives subcommittee on investor protection, wants to ban cryptocurrencies but doesn’t think Congress will take such action. “I don’t think we will do that [ban crypto] anytime soon,” he told the news agency.
“Lobbying money and campaign fundraising money works or people wouldn’t, and that’s why we didn’t ban crypto,” 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.
In addition to being concerned about individual investors being scammed, the congressman sees cryptocurrency as a threat to US national security. He believes crypto poses a systemic threat, empowering criminals and undermining the US dollar’s dominance.
Lawmakers are particularly concerned about crypto mixing services like Tornado Cash. In August, the US Treasury Department’s Office of Foreign Asset Control (OFAC) banned the Ethereum mixing application, claiming the mixer helped North Korean hackers such as the hacking syndicate known as the Lazarus Group.
Sherman admitted there is little he can do to stop investors from recklessly spending their money. “It’s hard running the Investor Protection Subcommittee in a country where people want to bet on it [meme coins]’ opined the US lawmaker, claiming:
Cryptocurrency is a meme you invest in hoping you can sell it to someone else before it tanks. That’s the beauty of a pyramid 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 efforts.
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 the SEC to go after major crypto exchanges trading XRP. Securities regulators announced in January that they had taken 97 crypto-related enforcement actions. In May, the regulator announced that it had nearly doubled the size of its crypto enforcement unit.
What do you think of Rep. Brad Sherman’s comments? Let us know in the comment section below.
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