US lawmaker blames ‘billionaire crypto bros’ for delayed legislation


United States congressman Brad Sherman, a identified crypto skeptic, has pointed the finger at “billionaire crypto bros” for slowing down much-needed cryptocurrency regulation. 

In a Nov. 13 assertion addressing the collapse of crypto alternate FTX, Sherman stated the alternate’s implosion has demonstrated the necessity for regulators to take immediate and aggressive action:

“The sudden collapse this week of one of many largest cryptocurrency corporations on the earth has been a dramatic demonstration of each the inherent dangers of digital property and the essential weaknesses within the business that has grown up round them.”

“For years I’ve advocated for Congress and federal regulators to take an aggressive strategy in confronting the various threats to our society posed by cryptocurrencies,” he added.

Sherman introduced his plans to work together with his Congress colleagues to look at choices for federal laws, which he hopes could be carried out with out the monetary affect of members within the cryptocurrency business:

“Thus far, efforts by billionaire crypto bros to discourage significant laws by flooding Washington with tens of millions of {dollars} in marketing campaign contributions and lobbying spending have been efficient.”

“I consider it’s important now greater than ever that the SEC take decisive motion to place an finish to the regulatory grey space during which the crypto business has operated,” the senator added.

Whereas Sherman made a direct reference to former FTX CEO Sam Bankman-Fried and political donations to the Democratic Occasion, he additionally talked about Ryan Salame, the co-CEO of FTX, who donated to Republicans in 2022.

Bankman-Fried was additionally reported to have donated $39.8 million into the current 2022 U.S. midterm election, which he stated was distributed to each the Democratic and Republican events. The almost $40 million determine made him the sixth largest contributor.

Whereas Sherman has advocated for an “aggressive strategy” to crypto regulation, Thomas Hook, a Professor on Cryptocurrency Regulation at Boston College College of Legislation just lately advised Cointelegraph that regulators needs to be trying to implement “frequent sense regulation:”

“[Regulators] are reacting to an business that’s evolving continuously however overregulation might stifle that innovation […] poorly thought-out regulation might create a two-fold situation: first it might restrict US shoppers’ skill to take part within the cryptocurrency ecosystem and it might additionally drive these companies to much less regulated jurisdictions.”

“This truly creates extra threat for patrons because it places them able of coping with much less regulated establishments to take part within the ecosystem,” he added.

His feedback, nevertheless, have been made earlier than the collapse of the FTX crypto alternate. Cointelegraph has reached out to Hook to grasp if his place has modified in mild of the brand new occasions.

Associated: US senators commit to advancing crypto bill despite FTX collapse

In the meantime, Shark Tank host and millionaire enterprise capitalist Kevin O’Leary said in a Nov. 11 interview with CNBC that U.S. regulators “want to begin with one factor” fairly than regulating all the pieces directly — with the investor recommending Congress begin with the Stablecoin Transparency Act.

O’Leary stated that given the current occasions at FTX, he believes institutional buyers will probably put a pause on deploying “critical capital” into new investments till a respectable regulatory framework is about in place:

“That may sign to all people around the globe that regulators in the US are taking crypto on, beginning to put guidelines in place, placing the guard rails on, nobody goes to play ball on this house on an institutional stage with critical capital till we get it carried out.”

Among the many most notable cryptocurrency payments to have been launched into U.S. Congress include the Central Bank Digital Currency Study Act of 2021, the Digital Commodities Consumer Protection Act of 2022 (DCCPA), the Stablecoin Transparency Act and the Cryptocurrency Tax Clarity Act.

Future payments will focus on President Joe Biden’s government order in March 2022 — which is able to embrace payments geared toward improving consumer and investor protection, selling monetary stability, countering illicit finance and bettering the US’ standing within the world monetary system, monetary inclusion and accountable innovation.