California Congressman Brad Sherman called cryptocurrencies a threat to the US financial system. However, he believes that regulators will not ban digital assets anytime soon.
In a recent interview, Brad Sherman, chair of the House Investor Protection Subcommittee, shared his views on the cryptocurrency industry. The congressman called cryptocurrencies a threat to US national security, as they undermine the dominance of the US dollar and “free hands” for criminals.
In particular, Sherman mentioned the Tornado Cash mixer, which was placed on the sanctions list by the US Department of the Treasury in early August. The Ministry of Finance claims that this service was used by a group of North Korean hackers Lazarus for money laundering. Sherman is also concerned about the high number of cryptocurrency scammers. He lamented that regulators are powerless if gullible investors themselves are willing to spend their money recklessly.
“It’s hard to lead an investor protection subcommittee when people are buying memetic cryptocurrencies in the hope of selling them to someone else before their price crashes. Regulators didn’t ban cryptocurrencies before because they didn’t realize their importance. They will not ban them even now, because there is too much money and power behind crypto assets, ”the American legislator laments.
Sherman explained that cryptocurrencies are increasingly being used to fund political campaigns. For example, recently New Hampshire senator candidate Bruce Fenton supported bitcoin. He believes that the US financial system is not collapsing because of bitcoin, but because of the actions of the US Federal Reserve System (Fed). Therefore, Sherman is not sure that Congress will ever outlaw crypto assets.
Congressman Sherman has long been known for his negative attitude towards the industry. In 2019, he expressed doubts about the advisability of Facebook launching the Libra stablecoin, which was later renamed Diem. In February, the developers refused to launch it due to misunderstandings with regulators.
Source: Bits
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