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 trade FTX, Sherman mentioned the trade’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 crucial weaknesses within the trade that has grown up round them.”

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

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

“To this point, efforts by billionaire crypto bros to discourage significant laws by flooding Washington with thousands and thousands of {dollars} in marketing campaign contributions and lobbying spending have been efficient.”

“I imagine it will be significant now greater than ever that the SEC take decisive motion to place an finish to the regulatory grey space by which the crypto trade has operated,” the senator added.

Whereas Sherman made a direct reference to former FTX CEO Sam Bankman-Fried and political donations to the Democratic Celebration, 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 latest 2022 U.S. midterm election, which he mentioned was distributed to each the Democratic and Republican events. The practically $40 million determine made him the sixth largest contributor.

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

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

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

His feedback, nevertheless, had been made earlier than the collapse of the FTX crypto trade. Cointelegraph has reached out to Hook to grasp if his place has modified in gentle 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 start out with one factor” slightly than regulating all the pieces directly — with the investor recommending Congress begin with the Stablecoin Transparency Act.

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

“That may sign to all people world wide that regulators in america are taking crypto on, beginning to put guidelines in place, placing the guard rails on, nobody goes to play ball on this area on an institutional stage with critical capital till we get it finished.”

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 embody payments geared toward improving consumer and investor protection, selling monetary stability, countering illicit finance and enhancing america’ standing within the world monetary system, monetary inclusion and accountable innovation.