US Senate Banking Chair Suggests Outlawing Cryptocurrency

• Brown mentioned FTX’s collapse as an example of why a ban would be worth considering.
• Cryptocurrencies are “dangerous” and a “threat to national security” as per Brown.

Sherrod Brown, the head of the United States Banking Committee, propounded that the Securities Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) to embargo Cryptocurrency. He further stated that the Treasury Department and “all the other agencies” should evaluate any potential actions linked to the Cryptocurrency market. Brown was speaking to Chuck Todd, the moderator of NBC’s “Meet the Press.”

Sherrod Brown added:

“Maybe banning it, although banning it is very difficult because it will go offshore and who knows how that will work”.

Raising Concerns About the Digital Currency Market

Brown used the shocking collapse of FTX as an illustration of why a ban could be worthwhile to examine. He claimed cryptocurrencies are “dangerous” and a “threat to national security.” He listed North Korean cybercriminal activities, drug trafficking, human trafficking, and terrorism financing as examples of problems they’ve aggravated. Brown has been skeptical of cryptocurrency for over a year, most notably raising concerns about stablecoin issuance and cryptocurrency advertising and marketing activities.

Brown stated on Nov. 30 advocating for an “all-of-government” approach to industry regulation, and on Dec. 13 praised the US Department of Justice for pursuing criminal charges against former FTX CEO Sam Bankman-Fried, who is presently imprisoned in the Bahamas awaiting extradition to the US.  Regulating bodies and investors were frightened by FTX’s collapse, which reignited concerns about the future of the digital currency sector.