Banking Committee Chairman: Maybe US Regulators Should Ban Crypto

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US Senator Sherrod Brown has suggested that US federal agencies, such as the Securities Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), should perhaps consider a cryptocurrency ban.

During an NBC Meet the Press session, however, he also acknowledged that this ban would be very difficult because the crypto industry could then relocate.

Referring to the various regulators in the United States, he said, “we want them to do what they need to do at the same time, maybe ban it, although banning it is very difficult because he will go abroad and who knows how it will work out”.

The senator also pointed to numerous incidents to back up his claims, not only the recent collapse of FTX, but also issues such as the threat to national security from Korean cybercriminals, drug and human trafficking and the terrorist financing and all the things that can happen. excluding crypto.

Earlier this month, Brown called for a collaborative approach between different government agencies when ruling over crypto, saying in a statement that single regulatory agencies currently generally do not have a complete view of the activities of crypto entities. crypto assets.

Brown, who has held a Democratic seat in Ohio since 2007, is not the only senior US government official to vehemently support tougher crypto regulation.

Senator Elizabeth Warren unveiled a new bill governing cryptocurrencies earlier this month, dubbed the Digital Asset Anti-Money Laundering Act.

The Warrens bill would seek to force providers of crypto assets to offer audited financial statements and impose bank-style capital requirements more in line with what is expected of traditional financial institutions. The law would also give the SEC increased powers to regulate the asset class.

Crypto already offshore

Contrary to Brown’s statement, the uncertain regulatory future in the United States is already pushing the crypto industry overseas.

Coinbase CEO Brian Armstrong pointed out in a Tweet that: FTX.com was an offshore exchange not regulated by the SEC.

https://t.co/0HxlRiI6Sy was an offshore exchange not regulated by the SEC.

The problem is that the SEC has failed to create regulatory clarity here in the United States, so many American investors (and 95% of business activity) have moved overseas.

Punishing American companies for this makes no sense.

Brian Armstrong (@brian_armstrong) November 10, 2022

Armstrong went on to say: The problem is that the SEC has failed to create regulatory clarity here in the United States, so many American investors (and 95% of business activity) have gone overseas, adding that punishing American companies for this makes no sense.

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