Popular crypto critic and US Congressman explains why a crypto ban won’t be effective

  • Brad Sherman said any policy or task committee intended to protect crypto investors won’t work so long investors are still gullible enough to invest in meme coins.
  • US lawmakers and regulators have differing opinions regarding regulating the crypto market.

Brad Sherman (popular crypto skeptic and US congressman) says that the option to ban crypto is no longer valid. Sherman made his assertions in a recent interview with the LA Times. The congressman said that the crypto industry has become more powerful recently. He explained that it is impossible to impose a blanket ban on cryptos as crypto holders make high capital donations to politicians.

The democrat from the Northridge area added that congress didn’t ban crypto at the beginning because it didn’t focus much on it. However, congress can still not ban it now because “there’s too much power and money behind it.” Sherman is well-known for his skepticism about crypto and has been demanding a ban on cryptos in the last three years.

Since his call for a ban is no longer valid, Sherman is now calling for the regulation of the crypto market. The US Congressman said he is more worried about protecting investors from falling for cheap crypto scams. However, he admitted that no matter the efforts of the judiciary, there would still be people willing to invest in cryptocurrencies like meme coins.

It is a huge struggle to be in a subcommittee tasked with protecting investors when the investors are still willing to wager on meme coins.

Like other anti-crypto lawmakers, Sherman worries about the illegal use of digital currencies. He has often said that cryptos make it easy for criminals to perform various nefarious activities, especially terrorism and money laundering.

The congressman once said supporters of cryptocurrencies are ‘anarchists’ who are advocates of tax evasion. Sherman suggested that the US Securities and Exchange Commission (SEC) should perform oversight functions on cryptos. His suggestions contradicted his earlier stance in July when he criticized the regulator for not going after the top crypto exchanges. Sherman was also heavily criticized by the XRP community when he claimed that the token was unregistered security.

US lawmakers differ on the regulatory procedure for cryptos

US lawmakers continue to demand that financial regulators in the US bring the fast-evolving crypto market under the jurisdiction of the law. However, the two parties have differing opinions on regulating the crypto market. Sherman and many other lawmakers support the idea of strict regulatory policies.

In contrast, many pro-crypto lawmakers are against the idea. They claim it would go against the decentralization ethos of the crypto space. Sherman was among the lawmakers that supported the ban on Tornado Cash despite the opposition from pro-crypto lawmakers. The US government banned the popular coin mixing service, stating that it is a significant threat to national security.

The US Treasury Department also said that North Korean hackers use the Tornado Cash protocol to launder stolen digital assets. Conversely, Cynthia Lummis, Hester Pierce, and other pro-crypto lawmakers continue to make a case for more suitable crypto regulations.