Congressman Brad Sherman is vowing to make all cryptocurrency usage in the U.S. illegal.
Let’s Get Rid of Crypto Altogether
The congressman is seeking to introduce a new bill to the House Financial Services Committee and urged all his colleagues to nip the problems associated with cryptocurrency “in the bud.” He comments:
An awful lot of our international power comes from the fact that the U.S. dollar is the standard unit of international finance and transactions. Clearing through the New York Fed is critical for major oil and other transactions.
To show why cryptocurrency is a poor financial choice, Sherman referred to a recent case of the Palestinian fundamentalist group Hamas, which requested bitcoin donations due to ongoing sanctions enforced by the U.S. and President Trump. In the past, the United States Congress has also challenged Iran’s abilities and decisions to create its own national cryptocurrency.
In a recent tweet, Sherman also took at a hit at social media giant Facebook, which is engaging in plans to develop its own digital asset. He commented:
I guess they think it’s okay to mine and sell the privacy of ordinary Americans – as long as they help terrorists avoid detection and sanctions.
By contrast, the Securities and Exchange Commission (SEC), which in the past has not always been kind to crypto, argued against Sherman’s verbiage, commenting that the U.S. securities market has “historically been the envy of the world.” Commissioner Hester Peirce warned that a lack of decision-making regarding crypto could potentially put the organization’s reputation on the line.
He states:
I do not want heel-dragging by the SEC in crypto to mar that well-deserved reputation.
Sherman’s fears, to a degree, do bear a base of reality. Cryptocurrencies like bitcoin have been used to fund terrorist organizations and are common on the dark web.
In addition, it’s hard to accept Facebook’s newly-renowned attitude on crypto when the Cambridge Analytica scandal still follows in the shadows.
At the same time, one could argue that Sherman doesn’t quite realize how cryptocurrency works. For example, Sherman – with a majority vote from his colleagues – could only ban crypto usage in the U.S. Outside nations could still potentially get their hands on crypto.
Why the U.S. Needs Crypto
This is dangerous in that it could give other (developing) countries a financial advantage over the United States. Granted these nations continue to utilize crypto and delve into blockchain technology, innovation in those countries could rise above that of the U.S., putting America behind in terms of technical knowledge, skill and prowess.
The best thing for Sherman to do could be to simply accept that crypto is here to stay and work to implement appropriate regulations. Thus, the U.S. remains ahead of the game, but criminal activity can be closely monitored and stopped accordingly.