A US senator has suggested that cryptocurrencies “maybe” should be banned following the collapse of crypto exchange FTX. However, he admitted that banning crypto is “very difficult because it will go offshore and who knows how that will work.”
Senator Sherrod Brown proposes to ban crypto
US Senator Sherrod Brown (D-Ohio), chairman of the Senate Banking, Housing and Urban Affairs Committee, spoke about cryptocurrency in an interview with NBC Sunday.
He stated that the Treasury Department and all the various regulatory agencies, including the US Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), must come together and evaluate any possible action regarding the cryptocurrency market. Referring to the SEC and CFTC, the senator said:
We want them to do what they need to do. At the same time, maybe ban it, although banning it is very difficult because it will go offshore and who knows how it will work.
Last week, the Senate Banking, Housing and Urban Affairs Committee held a hearing on the collapse of cryptocurrency exchange FTX. The House Financial Services Committee also held a separate hearing on FTX a day earlier.
FTX filed for bankruptcy on November 11, and its former CEO Sam Bankman-Fried (SBF) was arrested and is now in prison in the Bahamas. He and his crypto company are facing several fraud charges brought against them by the US government and regulators. The US is seeking the extradition of Bankman-Fried. However, the SBF told a court in the Bahamas on Monday that it would make a decision only after seeing all the charges against him.
Senator Brown on crypto regulation
The Ohio senator also said Sunday that the cryptocurrency market is a “complicated, unregulated pot of money” and that the problem is much bigger than FTX. “So we have to do this right,” he stressed.
“I have spent much of the last eight and a half years in this job as chairman of the Banking, Housing and Urban Affairs Committee,” Brown continued, explaining:
I educate my colleagues and try to educate the public about cryptocurrency and the dangers it poses to our security as a nation and the consumers they scam.
Last week, Senator Pat Toomey explained in his opening remarks at a Senate hearing on FTX that the consequences of crypto exchanges do not justify banning or “pausing” crypto. “Some of my colleagues have suggested pausing cryptocurrencies before we sort this out. This is deeply wrong, not to say impossible. Short of enacting draconian, authoritarian policies, cryptocurrency is unstoppable. If we tried, the technology would simply migrate offshore,” he warned.
What do you think about Senator Sherrod Brown’s proposal to ban crypto? Let us know in the comments section below.
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