The chairman of the U.S. Senate Committee on Banking, Housing, and City Affairs, Sherrod Brown, has referred to as for a complete regulatory framework for cryptocurrencies. “Latest crypto meltdowns have made clear that we want a complete framework to manage crypto merchandise to guard customers and our monetary system,” stated the senator.
US Lawmaker Desires Complete Regulatory Framework for Crypto
U.S. Senator Sherrod Brown (D-OH), chairman of the Senate Committee on Banking, Housing, and City Affairs, talked about crypto regulation Tuesday in his opening assertion on the congressional listening to titled “Crypto Crash: Why Monetary Safeguards are Wanted for Digital Property.”
“The cryptocurrency business has imploded,” the senator started, noting that the crypto market misplaced $1.46 trillion in worth in 2022 and crypto companies have slashed over 1,600 jobs. The lawmaker detailed:
As crypto values crashed final yr, platforms started collapsing, creating extra losses throughout the remainder of the crypto ecosystem. The crypto companies which are left have needed to halt buyer withdrawals, freezing folks out of their very own cash.
Whereas noting that crypto contagion didn’t infect the broader monetary system, the senator from Ohio stated: “We noticed glimpses of the injury it might have completed if crypto migrated into the banking system.” He warned: “This nightmare isn’t over but … We’re nonetheless studying the complete extent of the fallout from the FTX collapse.”
Noting that “As these crypto companies filed for chapter, regulators, and policymakers have additionally discovered how out-of-control a few of these companies have been,” the senator emphasised:
They have been over-leveraged and undercapitalized. They’d no inside danger controls. They have been careless with prospects’ cash. Within the case of FTX, they used it to line their very own pockets. Now the cash of hundreds of thousands of People is trapped and so they would possibly by no means get it again.
“These crypto catastrophes have uncovered what many people already knew: digital property — cryptocurrencies, stablecoins, and funding tokens — are speculative merchandise run by reckless corporations that put People’ hard-earned cash in danger. Not shocking from an business that was created to skirt the principles,” Senator Brown additional opined, including:
Latest crypto meltdowns have made clear that we want a complete framework to manage crypto merchandise to guard customers and our monetary system.
The lawmaker famous that present guidelines can apply to crypto, stating: “Crypto isn’t particular … We are able to begin with these commonsense rules as we think about a regulatory framework for digital property that places customers first and retains our monetary system protected.”
Senator Brown has lengthy been skeptical about cryptocurrency. In December final yr, he suggested that crypto ought to “possibly” be banned. Nonetheless, he acknowledged that it is extremely troublesome to ban crypto as a result of it is going to go offshore.
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