US Senate banking chair suggests outlawing cryptocurrency

Despite speculating on a potential ban, the U.S. It would be “extremely difficult,” according to Senator Sherrod Brown, to do so because business “would go offshore.”

The SEC (Securities and Exchange Commission) and the CFTC (Commodity Futures Trading Commission) also might wish to outlaw the cryptocurrency market as stated by Mr. Sherrod Brown, the chairman of Banking Committee in US.

Brown made the remarks on “Meet the Press” on December 18; however, the senator afterwards clarified that enforcing a ban would be challenging:

“We want them to take the necessary action at the same time, perhaps by outlawing it, even though it would be very challenging since it would likely move offshore and who knows how that would function.”

Earlier, Brown had quoted that he had the “same thought” as Senator Jon Tester, who also is of the opinion that the cryptocurrencies should be banned.

The Ohio lawmaker also postulated that for the past 18 months, he had been communicating about the dangers of cryptocurrencies, with his colleagues and masses, while simultaneously calling for prompt and forceful action.

When I visited the Treasury and the Secretary, I asked them to request an examination of the entire government from all the various regulatory bodies.

When I visited the Treasury and the Secretary, I asked them to request an examination of the entire government from all the various regulatory bodies.We must proceed in that manner and, if necessary, through legislation since the SEC has been extremely active, the speaker continued.

Brown used the shocking collapse of FTX as an illustration of why a ban could be worthwhile, but he also noted that it “is only one major aspect of this problem.”

He claimed cryptocurrencies are “hazardous” and a “threat to national security,” pointing to the problems they have made worse, including North Korean cybercrime, drug and human trafficking, and terrorism financing.

The head of the Banking Committee has been skeptical of cryptocurrencies for more than a year, most recently raising issues with stablecoin issuance and cryptocurrency advertising and marketing activities.

Brown also had called for a “all-of-government” strategy to oversee the business in a statement on 30th November. On December 13, he praised the U.S. Department of Justice for charging Sam Bankman-Fried, the former CEO of FTX, who is presently detained in the Bahamas awaiting extradition.

Senator Brown’s colleagues don’t all appear to agree with him.

Earlier in November Senator Tom Emmer had also stated that the demise of FTX was not just a “crypto failure,” but in fact a disaster that was brought on by autocratic control of a few actors.

Emmer believes that overly restrictive regulations will hinder industry innovation in the United States, forcing it to lose its position as the world’s dominant market, which many believe is already happening.

It should be mentioned that Patrick McHenry, who will take over as the House Committee on Financial Service’s next chairman, is an advocate for Bitcoin. This week, he demanded a postponement of the tax adjustments affecting cryptocurrency in order to get additional information on the original, “poorly worded” tax law.