Regulation

US Congressman Slams Crypto, Says Government May Have Opportunity To Gain Control Over Digital Assets

A US Congressman who has a fame for being a vocal critic of crypto says a chance might come up the place the federal government may take again energy over digital property.

In a brand new CNBC interview, Consultant Brad Sherman of Southern California says now isn’t the time to ban crypto however highlights that he sees a state of affairs the place the federal government may crack down on the nascent asset class.

“Crypto isn’t a brand new asset class. Charles Ponzi developed this asset class properly over a century in the past. I feel that if crypto loses among the cash and energy that’s behind it that we’ll have a chance to regain that management.”

Sherman notes that crypto has one distinct benefit over the US greenback as a forex and that benefit would disappear as soon as clear know-your-customer and anti-money laundering guidelines come into play.

“As soon as these legal guidelines are clear, crypto loses the one factor it aspires to be and that it efficiently competes with the greenback by having a bonus over the greenback, and it has just one benefit. It’s properly fitted to the tax evaders, the chapter fraud [and] the household courtroom fraud that may finest be carried out if you happen to keep away from your know-your-customer legal guidelines. If we are able to impose these legal guidelines on crypto, then people who find themselves investing as a result of they suppose it’ll be a profitable new forex will notice it has no forex benefit over the greenback.

At that time, it simply turns into one other non-fungible token. It turns into the Pet Rock of the twenty first century.”

Earlier this month, Sherman stated he was fearful about investor safety, noting that it’s tough to cease folks from spending cash the way in which they wish to spend it.

“It’s laborious to be operating the subcommittee devoted to investor safety in a rustic during which folks wish to wager on [meme coins]. Cryptocurrency is a meme you spend money on, within the hopes which you can promote it to any individual else earlier than it tanks. That’s the great factor a few Ponzi scheme.”

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