U.S. Senate Banking Chair States Banning Crypto Is A Potential Option

Key Takeaways

• U.S. Senator Sherrod Brown has hinted at the possibility of banning cryptocurrencies.
• Sherrod stated that cryptocurrencies are “dangerous” and a “threat to national security.”

United States Banking Committee chairman Sherrod Brown has hinted at the possibility of banning cryptocurrencies. Sherrod is the head of the Senate Committee on Banking, Housing, and Urban Affairs. Brown, referring to government regulatory bodies- the U.S. Treasury, the Securities and Exchange Commission(SEC), and the Commodity Futures Trading Commission(CFTC) said, “We want them to do what they need to do…maybe banning.

He also added that banning crypto is “very difficult because it will go offshore and who knows how that will work. This is a complicated, unregulated pot of money.” In his speech, Sherrod claimed that cryptocurrencies are “dangerous” as well a “threat to national security,” citing drug trafficking, North Korean cybercriminal activity, human trafficking, and terror financing as some issues aggravated by the use of digital assets.

“Things that look and behave like securities, commodities, or banking products need to be regulated and supervised by the responsible agencies who serve consumers…Crypto doesn’t get a free pass because it’s bright and shiny”, he added.

Further, he also thanked U.S. and Bahamian officials for arresting Sam Bankman Frued-the founder of bankrupt crypto exchange FTX.

If crypto acts like a security, commodity, or bank account, then it needs to be regulated as such. pic.twitter.com/1KfHuSJgp7

— Senate Banking and Housing Democrats (@SenateBanking) December 14, 2022

U.S. Senators are becoming increasingly skeptical of crypto due to unfavorable market conditions. Earlier this month, Senator Jon Tester, who serves on the same banking committee as Brown, said that he sees no reason why crypto should exist. Tester is also a strong advocate of both banning and regulating cryptocurrencies.

However, some senators in recent days have also vehemently opposed crypto regulation. One of them is Senator Tom Emmer, who believes crippling regulation in the crypto sector would harm industry innovation in the United States and cause the country to lose its market dominance worldwide.

Regulator giants like the SEC are now focused on introducing more regulations, thereby stifling the potential of growth in the crypto sector. SEC Chair Gary Gensler recently stated that crypto exchanges that don’t cooperate with the SEC are “operating outside of the law” and may be at risk of enforcement action.

As part of formulating crypto regulations, the U.S. Treasury Department is expected to complete an “illicit finance risk assessment” on decentralized finance and non-fungible tokens in early 2023.