Sherman, according to Cointelegraph, focused on the demise of cryptocurrency exchange FTX and said that the company’s demise demonstrated the necessity for regulators to take the appropriate measures.
According to Cointelegraph, Brad Sherman, a congressman from the United States and purported cryptocurrency skeptic, has blamed “billionaire crypto bros” for the delay in necessary cryptocurrency regulation.
Cointelegraph reports that in a statement made on November 13, 2022, Sherman drew attention to the collapse of the cryptocurrency exchange FTX and said that the exchange’s demise demonstrated the need for regulators to act.
I have long said that Congress and federal regulators should be aggressive in addressing the myriad dangers that cryptocurrencies represent to our society, according to Sherman.
Sherman announced his plans to cooperate with his Congress colleagues for the investigation of possibilities for Federal law, which he anticipates will be carried out with the financial influence of members in the cryptocurrency business, based on information provided by Cointelegraph. Sherman is said to have made a specific allusion to Sam Bankman-Fried, the former CEO of FTX, and his political contributions to the Democratic Party. Ryan Salame, co-CEO of FTX, who gave to Republicans in 2022, was also mentioned by Sherman.
“[Regulators] are responding to an industry that is constantly changing, but excessive regulation could stifle that innovation […] poorly thought-out regulation could create a double-edged problem: first, it could restrict US consumers’ access to the cryptocurrency ecosystem and, second, it could force these businesses to relocate to less regulated jurisdictions. Customers are being put in a situation where they must engage with institutions that are less regulated in order to participate in the ecosystem, which increases their risk, according to Sherman.
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 are among the cryptocurrency bills that have been introduced in the US, according to Cointelegraph.
