Crypto Ban Seems Considerable to US Senate

FTX collapse has created a stir in the entire crypto market.

Sherrod Brown, chairman of the United States Banking Committee, believes the Securities Exchange Commission(SEC) and the Commodity Future Trading Commission(CFTC) should consider a ban on cryptocurrencies.

Brown discussed cryptocurrency during his appearance on NBC’s Meet the Press. He noted that the senator quickly added that a ban would be quite difficult to implement.

“We want them to do what they need to do at the same time, maybe banning it, although banning it is very difficult because it would go offshore, and who knows how that would work.”

The collapse of the cryptocurrency exchange FTX has eroded the beliefs of crypto evangelists from the crypto market.

Sherrod responded to the host’s question on Senator Jon Tester, who also believes that cryptocurrencies should be banned; Brown mentioned that he shares the “same thought.”

The representative of Ohio noted that for the last 18 months, he has been “educating” his friends, colleagues and the public about the possible side effects of cryptocurrencies, demanding imminent and aggressive action.

The representative further added, “I’ve already gone to the Treasury and the Secretary and asked for a government-wide assessment through all the various regulatory agencies [….] The SEC has been particularly aggressive, and we need to move forward that way and legislatively if it comes to that.”

Brown said the FTX collapse was an example of why cryptocurrencies should be banned, but he added it “is only one huge part of this problem.”

He argued that cryptocurrencies were “dangerous” and a “threat to national security.” Brown added that North Korean cybercriminal activity, drug trafficking, human trafficking and the financing of terrorism as some of the problems that crypto would facilitate. He also expressed concerns regarding Stablecoins.

The chairman praised the U.S. Department of Justice for filing criminal charges against the founder of FTX, Sam Bankman Fried and further praised Bahamian authorities for putting him behind bars.

The FTX collapse has hurt user confidence in cryptocurrencies and other blockchain-based products.

The globally popular cryptocurrency exchange failures have scared crypto users, investors, and approximately a dozen companies that are worst affected by the collapse of cryptocurrency exchange.

The crypto exchange filed for bankruptcy on November 11, 2022, and the founder and chief executive officer of FTX, Sam Bankman Fried, was the one who filed the company’s bankruptcy; soon after bankruptcy, he resigned from his position at the firm.

Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing