A US Senator has suggested that the cryptocurrency should “maybe” be banned following the collapse of cryptocurrency exchange FTX. However, he acknowledged that banning cryptocurrencies “is very difficult because it will go offshore and who knows how it will work.”
Senator Sherrod Brown suggests banning cryptocurrencies
US Senator Sherrod Brown (D-Ohio), chair of the Senate Committee on Banking, Housing and Urban Affairs, spoke about cryptocurrency in an interview on NBC Sunday.
He said the Treasury Department and all the different regulatory agencies, including the US Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), must come together and evaluate every possible action related to the cryptocurrency market . Referring to the SEC and the CFTC, the Senator said:
We want them to do what they have to do. At the same time, maybe ban it, even though banning it is very difficult because it will go to the open sea and who knows how it will work.
Last week, the Senate Committee on Banking, Housing and Urban Affairs held a hearing on the collapse of cryptocurrency exchange FTX. The day before, the House Financial Services Committee also held a separate hearing on FTX.
FTX filed for bankruptcy on Nov. 11, and its former CEO Sam Bankman-Fried (SBF) was arrested and is now in jail in the Bahamas. He and his cryptocurrency firm are facing several fraud charges brought against them by the US government and regulators. The United States requests the extradition of Bankman-Fried. However, SBF told the Bahamian court on Monday that it will make a decision only after it has seen all the allegations against him.
Senator Brown on the regulation of cryptocurrencies
The Ohio senator also said on Sunday that the cryptocurrency market is a “complicated and unregulated money pot” and the problem was much bigger than FTX. “So we have to get it right,” he stressed.
“I have spent much of the past eight and a half years in this job as chairman of the committee on banking, housing and urban affairs,” Brown continued, elaborating:
Educating my colleagues and trying to educate the public about cryptocurrencies and the dangers it presents to our security as a nation and the consumers who are deceived by it.
Last week, Senator Pat Toomey explained in his opening remarks at the Senate hearing on FTX that the fallout from the cryptocurrency exchange does not justify banning or “pausing” cryptocurrencies. “Some of my colleagues have suggested that we put crypto on hold before we can address the issue. This is deeply misleading, not to mention impossible. Short of implementing draconian and authoritarian policies, cryptocurrency cannot be stopped. If we tried, the technology would simply migrate offshore,” he warned.
What do you think of Senator Sherrod Brown’s suggestion to ban cryptocurrencies? Let us know in the comments section below.
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