An outright ban on cryptocurrencies. This is the measure envisaged by Sherrod Brown, chairman of the US Senate Banking Committee, in the face of what he considers to be considerable risks. Is it doable, and why wouldn’t it probably have the desired effect?
The Democrats are standing up against FTX and cryptocurrencies
It’s a flippant remark, but it carries weight when you know it comes from Sherrod Brown, the chairman of the US Senate Banking Committee. Speaking on CNBC’s microphone, the Democratic senator unsurprisingly returned to the FTX affair, and in particular on the figure of Sam Bankman-Fried. As a reminder, the family of the ex-CEO is very involved in the American Democratic Party, and the latter was among the biggest donors.
For the Democrats, the instruction is therefore as follows: break away from FTX, and the “SBF” family. They thus wished to reimburse certain donations from the deposed CEO, as we learned a few days ago. The idea seems to be the same for Sherrod Brown, who also has another interest in breaking away from cryptocurrencies, since he chairs the Senate Banking Committee.
He thus returned to the dangers which according to him are specific to cryptocurrencies, including Ponzi schemes, the lack of consumer protection, to the risks of terrorist financing which could affect the country’s security. The Senator also cited drug trafficking, human trafficking and cybercrime in his list. Common arguments of course, often shared by critics of cryptocurrencies.
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Senate Banking Committee Chairman discusses cryptocurrency ban
Hence a conclusion of the Chairman of the Banking Committee: it may be necessary, according to him, to come to a ban. Asked about potential laxity in cryptocurrency regulation, he said he considered that government agencies were indeed not doing enough :
“We want them to do what they’re supposed to do at the same time – maybe ban [les cryptomonnaies]although it is very difficult to ban them, because they will go abroad, and who knows what will happen next.»
This of course shows a certain lack of knowledge of the sector – voluntary or not. Sherrod Brown categorizes centralized crypto companies, like FTX, which are subject to US regulations and laws, and cryptocurrencies themselves. The latter will of course not need to travel abroad, since they are not located in one place. Moreover, their very nature makes them accessible even when a government prohibits them.
From what we currently perceive of American regulations, it remains unlikely that cryptocurrencies will eventually be banned – and they would in any case not be controllable. But Sherrod Brown’s remark shouldn’t be taken lightly: it shows a certain change in tone since the FTX affair, which went to shake up the ruling party in the United States.
👉 Also read – FTX case: what is the risk of Sam Bankman-Fried?
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Source: CNBC, Meet The Press
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