United States – Senator Sherrod Brown, chair of the banking committee, discusses how the government should consider cryptocurrency after the crisis of FTX. The possibility of banning digital assets rises while waiting for stronger regulation.
The collapse of FTX leads other cryptocurrency firms to sway from the aftereffects. Now, there’s another topic that will put challenges in the industry.
Senate banking committee, Sherrod Brown, answered the questions on the Meet the Press of NBC on December 19 regarding the approach to cryptocurrency after the crisis of FTX.
Chuck Todd hosted the event, and he asked the politician whether regulating cryptocurrency might provide a “green light” to something that people think should be prohibited.
Senator Brown referred to the Treasury, the Commodity Futures Trading Commission, and the Securities and Exchange Commission as government agencies. He stated that the Senate board wants these agencies to want to do what they need to do, which includes banning digital assent.
Brown’s comments followed what Senator Jon Tester, another politician who’s part of the same banking committee. The host, Todd, asked Tester last weekend if cryptocurrency should be banned or regulated. The other senator stated that it’s one way or another. However, he also added that he saw no reason why crypto should exist.
Aside from the lawmakers, other business leaders in Washington, D.C. felt the same way. The CEO of JPMorgan Chase, Jamie Dimon, called cryptocurrency a decentralized Ponzi program that’s not good for anyone. Berkshire Hathaway’s vice chairman, Charlie Munger, and the business partner of Warren Buffett said that digital asset is a venture in nothing, highlighting that anyone who offers it is either evil or delusional.
Munger praised Xi Jinping, a Chinese leader, for being witty enough to prohibit Bitcoin or BTC in China. However, Brown also acknowledged that prohibiting cryptocurrency is very hard since it will go offshore. It’s a complex and uncontrolled jar of money.
SBF or Sam Bankman-Fried, the founder of FTX, had a sumptuous penthouse lifestyle, yet he misused the funds of customers worth billions of dollars, as per federal prosecutors. Authorities in the Bahamas arrested him following a formal announcement by the government of the US with criminal charges. The US government requested an extradition process, which already happened before in 1994.
Brown extended his gratitude, thanking the Bahamian and US officials who initiated the arrest. He stated that he trusted that SBF will be taken to justice soon. The senator also added that things that behave like commodities, banking products, or securities need to be controlled and managed by accountable agencies that served consumers. Cryptocurrency doesn’t have a free pass even though it’s shiny and bright.