US lawmaker blames 'billionaire crypto bros' for delayed legislation
United States congressman Brad Sherman, a identified crypto skeptic, has pointed the finger at “billionaire crypto bros” for slowing down much-needed cryptocurrency regulation.
In a Nov. 13 assertion addressing the collapse of crypto trade FTX, Sherman stated the trade’s implosion has demonstrated the necessity for regulators to take fast and aggressive motion:
“The sudden collapse this week of one of many largest cryptocurrency corporations on this planet has been a dramatic demonstration of each the inherent dangers of digital belongings and the important weaknesses within the trade that has grown up round them.”
“For years I’ve advocated for Congress and federal regulators to take an aggressive strategy in confronting the various threats to our society posed by cryptocurrencies,” he added.
Sherman introduced his plans to work along with his Congress colleagues to look at choices for federal laws, which he hopes might be carried out with out the monetary affect of members within the cryptocurrency trade:
“So far, efforts by billionaire crypto bros to discourage significant laws by flooding Washington with hundreds of thousands of {dollars} in marketing campaign contributions and lobbying spending have been efficient.”
“I consider it is vital now greater than ever that the SEC take decisive motion to place an finish to the regulatory grey space during which the crypto trade has operated,” the senator added.
Whereas Sherman made a direct reference to former FTX CEO Sam Bankman-Fried and political donations to the Democratic Celebration, he additionally talked about Ryan Salame, the co-CEO of FTX, who donated to Republicans in 2022.
Bankman-Fried was additionally reported to have donated $39.8 million into the current 2022 U.S. midterm election, which he stated was distributed to each the Democratic and Republican events. The practically $40 million determine made him the sixth largest contributor.
Whereas Sherman has advocated for an “aggressive strategy” to crypto regulation, Thomas Hook, a Professor on Cryptocurrency Regulation at Boston College Faculty of Regulation lately advised Cointelegraph that regulators ought to be seeking to implement “widespread sense regulation:”
“[Regulators] are reacting to an trade that’s evolving continuously however overregulation might stifle that innovation […] poorly thought-out regulation might create a two-fold problem: first it might restrict US customers’ potential to take part within the cryptocurrency ecosystem and it might additionally drive these companies to much less regulated jurisdictions.”
“This really creates extra danger for patrons because it places them ready of coping with much less regulated establishments to take part within the ecosystem,” he added.
His feedback, nevertheless, had been made earlier than the collapse of the FTX crypto trade. Cointelegraph has reached out to Hook to know if his place has modified in gentle of the brand new occasions.
Associated: US senators decide to advancing crypto invoice regardless of FTX collapse
In the meantime, Shark Tank host and millionaire enterprise capitalist Kevin O’Leary acknowledged in a Nov. 11 interview with CNBC that U.S. regulators “want to begin with one factor” moderately than regulating every little thing without delay — with the investor recommending Congress begin with the Stablecoin Transparency Act.
O’Leary stated that given the current occasions at FTX, he believes institutional buyers will seemingly put a pause on deploying “severe capital” into new investments till a respectable regulatory framework is about in place:
“That will sign to everyone around the globe that regulators in america are taking crypto on, beginning to put guidelines in place, placing the guard rails on, nobody goes to play ball on this area on an institutional degree with severe capital till we get it executed.”
Among the many most notable cryptocurrency payments to have been launched into U.S. Congress include the Central Bank Digital Currency Study Act of 2021, the Digital Commodities Consumer Protection Act of 2022 (DCCPA), the Stablecoin Transparency Act and the Cryptocurrency Tax Clarity Act.
Future payments will focus on President Joe Biden’s government order in March 2022 — which is able to embody payments geared toward enhancing client and investor safety, selling monetary stability, countering illicit finance and enhancing america’ standing within the international monetary system, monetary inclusion and accountable innovation.
