Here’s why the U.S. government is unlikely to ban cryptocurrencies anytime soon, according to congressman Brad Sherman
Democratic Representative Brad Sherman told the Los Angeles Times that cryptocurrencies wouldn’t be banned in the United States “anytime soon.”
The head of the House Financial Services Subcommittee on Investor Protection claims that the U.S. government didn’t ban crypto when was still in its nascency because it was viewed as unimportant.
Now, however, there is too much money and lobbying behind the industry. Hence, a cryptocurrency ban is impossible for the foreseeable future.
The Californian politician is concerned about criminals misusing cryptocurrencies. As reported by U.Today, he has repeatedly stated that crypto facilitates terrorism and other nefarious activities. Sherman has repeatedly called for a blanket ban on digital assets, becoming the most vocal critic of the industry in Congress. He claimed that cryptocurrencies had the support of “anarchists” who are advocating for tax evasion.
In July, Sherman riled up the supporters of the XRP cryptocurrency after stating that the controversial token is an unregistered security.
The Tornado Cash ban
While the U.S. government is nowhere close to imposing a blanket ban on cryptocurrencies, it did ban the controversial Tornado Cash protocol last month, ruffling the feathers of crypto lobbyists. The Treasury Department identified the popular coin mixing service as “a significant threat” to national security after it was repeatedly used by North Korean hackers for laundering stolen crypto. Sherman singled out Tornado Cash as a matter of particular concern.
The ban shows that the U.S. government is still capable of collaring crypto in spite of strong lobbying efforts. However, there is some resistance in Congress. Crypto-friendly Republican Tom Emmer started demanding an explanation from the Treasury Department regarding the Tornado Cash sanctions that could have wide implications for the crypto industry.
The Fed rules out a crypto ban
Last October, Federal Reserve Chairman Jerome Powell said that it was appropriate to regulate cryptocurrencies, but he ruled out a full-fledged ban.
That said, Powell described cryptocurrencies as a “vehicle for speculation” this March.