Representative Brad Sherman, a Democrat, told the Los Angeles Times that cryptocurrencies would not be outlawed “anytime soon” in the United States.
According to the House Financial Services Subcommittee on Investor Protection chairman, the U.S. didn’t outlaw crypto while it was in its infancy as it was deemed irrelevant.
However, too much money and lobbying support the sector. Consequently, a cryptocurrency prohibition is now unfeasible.
The lawmaker from California is worried about criminals exploiting bitcoins. Asserting that cryptography helps terrorism and other illegal actions, Sherman advocated for a ban on all digital assets, making him the most outspoken opponent of the business in Congress. He stated, “Cryptocurrencies have the political support of patriotic anarchists who are rooting for tax evasion. I hope we shut it down.”
— Congressman Brad Sherman (@BradSherman) June 30, 2021
In July, Sherman angered fans of the contentious XRP cryptocurrency by declaring that the token is an unregistered securities.
The Tornado Cash ban
While the U.S. government is far from considering a ban on all cryptocurrencies, it did restrict the contentious Tornado Cash protocol last month. The Treasury Department deemed the crypto-mixing service a “serious danger” to national security after North Korean hackers regularly exploited it to launder stolen cryptocurrency. Sherman identified Tornado Cash as a cause for great concern.
Despite extensive lobbying efforts, the restriction demonstrates that the U.S. government can still control crypto. Nonetheless, there is some opposition in Congress. Tom Emmer, a Republican who supports cryptocurrencies, demanded an explanation from the Treasury Department over the Tornado Cash fines, which may have far-reaching implications for the sector. Related Former ARK Invest Analyst Reveals Bear Market’s Biggest Mistake
The Fed excludes a crypto prohibition.
Chairman of the Federal Reserve Jerome Powell stated in October 2017 that cryptocurrencies should be regulated. However, he ruled out a complete ban.
In March of this year, Powell labelled cryptocurrencies as a speculation vehicle.