Crypto

Senator Sherrod Brown Leaves Possibility of a Crypto Ban Open as Momentum Builds for Tougher Regulation

Cryptocurrency firms reeling from FTX’s epic collapse and its aftermath received another unwanted development on Sunday’s talk shows.

Senator Sherrod Brown, Chairman of the Senate Banking Committee, answered questions on NBC Meet the press today on how lawmakers should approach cryptocurrencies after the FTX debacle.

Host Chuck Todd asked lawmakers if crypto regulation would give a “green light” to something many people think should be banned.

Brown, referring to government agencies – the Treasury, the Securities and Exchange Commission and the Commodity Futures Trading Commission –responded“We want them to do what they need to do…maybe ban.”

His comments follow those of Senator Jon Tester, who sits on the same banking committee and whom Todd asked last weekend whether crypto should be regulated or banned.

“One or the other,” he said. responded. “He couldn’t pass the smell test for me…I don’t see any reason why this stuff should exist.” I really do not know.

Crypto an “investment in nothing”

But it’s not just lawmakers in Washington, DC — many high-profile business leaders agree.

In September, JPMorgan Chase CEOJamie Dimon called crypto a “decentralized Ponzi scheme” that is “not good for anyone”.

Charlie Munger, Vice President of Berkshire Hathaway and Warren Buffett’s business partner, said this summer“Crypto is not an investment in anything… I think anyone selling this stuff is either delusional or evil. I’m not interested in undermining the national currencies of the world.

Munger went so far as to praise Chinese leader Xi Jinping for to be “smart enough” to ban Bitcoin in China.

But Brown acknowledged on Sunday that the crypto ban is “very difficult because it will go overseas and who knows how it will work… It’s a complicated and unregulated kitty.”

FTX founder Sam Bankman-Fried founded his company in the Bahamas, where he allegedly led a lavish penthouse lifestyle and, according to federal prosecutors, embezzled billions of dollars in customer funds.

Bahamian authorities arrested him on Monday following official notification from the US government that he had filed criminal charges against him and would likely seek his extradition. The United States and the Bahamas had a extradition procedure in place since 1994.

Crypto ‘doesn’t get a free pass’

Brown this week thanked the US and Bahamian officials behind the arrest, add in a statement, “I hope that Mr. Bankman-Fried will soon be brought to justice. Clearly he owes the American people an explanation.

He added: “Things that look and behave like securities, commodities or banking products need to be regulated and supervised by responsible agencies that serve consumers…Crypto doesn’t get a free pass for she is bright and shining.”

Crypto exchange CEO Brian Armstrong Coinbasenoted in Tweeter last month that FTX was “an offshore exchange not regulated by the SEC”.

His company is based in the United States and, as a publicly traded company, has more transparency than FTX. This week, Coinbase shares fell to a historic low.

“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,” he said. he writes. “Punishing American companies for this makes no sense.”

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