“Rep. Brad Sherman Hopes SEC Will ‘End’ Cryptocurrency in US”


US Rep. Brad Sherman has a negative opinion of cryptocurrencies, which he expressed in a recent interview with CNBC. He stated that the crypto industry has “attracted so many charlatans and certainly needs regulation”.

Sherman is a member of the US House Financial Services Committee, and he made his remarks just before the Federal Reserve rate announcement. The timing coincided with the recent regulatory action against Binance and Coinbase by the US Securities and Exchange Commission (SEC).

When asked if this enforcement by the SEC signified the end of crypto in America, Sherman replied that he “hope[s] so”, but “don’t think so”. He claimed that crypto is not beneficial for the US, citing that promoters advertise it as a way to insulate a credit financial system from the federal government in order to “be available for sanctions evaders”. He labeled cryptocurrency as “hidden money” and believes that it’s used by tax and sanctions evaders.

Sherman also dismissed the argument that crypto is meant to reduce transaction costs for the average American, pointing out that even when the market cap was at $3 trillion, it “didn’t make it easier or cheaper to buy a sandwich”. He explained that the traditional debit and credit cards are more efficient than crypto, since customers would need to convert it into fiat before using it.

The Congressman believes that crypto will ultimately fade due to its own shortcomings; citing the FTX exchange collapse in November 2022 which resulted in the arrest of its CEO, Sam Bankman-Fried, for fraud and other charges. He declared that there is “no logical reason why Bitcoin is more valuable than hamster coin” and referenced the creation of Cobra coin, which was worth millions for a while.

In conclusion, Sherman said that crypto needs regulation and will ultimately fade “because of crypto”.

Related articles

Recent articles