In a recent media interaction, a United States lawmaker displaying an highly antagonistic approach has wished for the end of cryptocurrencies. Reportedly, Congressman, Brad Sherman (Democrat, California) has expressed his hope for the end of cryptocurrencies, an opinion that could shatter the dreams of crypto advocates.
The Democratic lawmaker, who is well-known for his anti-crypto stance, rejected the idea that cryptocurrencies could benefit the economy or consumers, stating that their primary use was to evade the U.S. government and sanctions. On being asked about the ongoing regulatory crackdown on the crypto sector in the US and if it hinted the end of cryptocurrencies in America, Sherman replied:
I hope so, don’t think so.
Further, Sherman expressed skepticism at the high valuation of certain cryptocurrencies, saying that there was “no logical reason why Bitcoin is more valuable than Hamster Coin or Cone Tribe Coin.” Additionally, he dismissed that cryptocurrencies have advantages for everyday users. He explained:
At one point, they were $3 trillion, and they didn’t make it easier or cheaper to buy a sandwich at Subway. If you go to Subway, you can use a debit or credit card. If you have crypto, you have to change it into money, then transfer it to your debit card, and then buy a sandwich.
During the interview, Sherman suggested that the market’s obsession with these digital currencies had drawn “charlatans”, which means something that is fake. He also predicted that cryptocurrencies would “fade because of crypto”. Despite his harsh criticisms, the Congressman stopped short of calling for complete regulatory extinction, suggesting the market might self-regulate.
Notably, Sherman’s statements follows recent regulatory crackdown on crypto entities by the Securities and Exchange Commission (SEC). Last week, the SEC filed charges against two crypto firms- Binance and Coinbase for violating federal securities laws and operating without a license. While the regulator’s move has been largely criticised, lawmakers from both the parties have picked sides.
As evident over the months, Republicans have been more supportive towards cryptocurrencies whereas Democrats do the opposite. To this, Democrats have often risen in support of Gary Gensler, SEC chief, who is highly antagonistic towards crypto entities whereas Republicans have largely criticised him and even pitched a bill to remove his from his position.
While the crypto regulations in large would be a result of collaborative effort between both the parties, due to the contradictory approaches the process has mostly ended up in a deadlock. However, with the increasing pressure, the lawmakers would have to find common grounds to effectively regulate crypto.