Senate banking chair considers crypto prohibition

Senator Sherrod Brown of the United States argued that it would be very difficult to implement such a prohibition due to the fact that the activity in question would just move offshore.

Sherrod Brown, the chairman of the United States Banking Committee, has proposed that the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) might maybe consider outlawing cryptocurrencies.

In answer to a question that had been posed earlier by a presenter concerning Senator Jon Tester, who is of the opinion that cryptocurrencies need to be outlawed, Brown said that he is of the same opinion.

The congressman from Ohio said that he has been warning his colleagues and the general public about the risks associated with cryptocurrencies for the last eighteen months, and he has been advocating for immediate and stringent action to be done.

He said that he had previously approached the Treasury and the Secretary with his request for a comprehensive review of the situation by the whole government, including all of the many regulatory agencies.

Brown noted the shocking collapse of FTX as an example of why it may be worthwhile to contemplate a ban, but he stressed that this is just one significant component of the whole issue.

He argued that cryptocurrencies are risky and a threat to national security, and he cited North Korean cybercriminal activity, the trafficking of drugs and humans, as well as the financing of terrorist organizations, as some of the issues that have been exacerbated as a result of the use of cryptocurrencies.

Since the beginning of this year, the chairman of the Banking Committee has been vocal about his doubts towards cryptocurrencies. Most recently, he has highlighted his worries over the issues of stablecoin issuance as well as cryptocurrency advertising and marketing efforts.

On November 23, Senator Tom Emmer made the statement that the breakdown of FTX was not a failure of cryptography but rather a failure caused by centralized actors.

Emmer also holds the view that crippling regulation would stifle industry innovation in the United States, causing it to lose its position of global market dominance — something that many people believe is already unfolding. Emmer is a supporter of the American Competitiveness and Innovation Act (ACIA).