There’s Too Much Money and Power Behind Crypto to Ban It: Congressman Sherman

Congressman Brad Sherman, who represents California’s San Fernando Valley in the U.S. Congress, is a keen critic of the cryptocurrency industry. In his view, it undermines the dominance of the American dollar and is a threat to the country’s national security.

However, Sherman does not believe the government can prohibit the asset class “anytime soon” since there is too much money and power behind it.

Crypto Should Have Been Banned Years ago

Unlike some other American politicians, Brad Sherman is firmly against cryptocurrencies. He also thinks banning the asset class is a much better step than imposing regulations.

In a recent interview for Los Angeles Times, he argued that the government had made a mistake not prohibiting it years ago when there was less money concentrated in the sector:

“I don’t think we’re going to get [to a ban] anytime soon. Money for lobbying and money for campaign contributions works, or people wouldn’t do it; and that’s why we haven’t banned crypto. We didn’t ban it at the beginning because we didn’t realize it was important, and we didn’t ban it now because there’s too much money and power behind it.”

Sherman’s main concerns are that digital assets could pose a systemic threat to America’s financial network and undermine the supremacy of the dollar. In addition, he claimed that wrongdoers could employ bitcoin and altcoins in their criminal operations, going under the radar of the authorities.

The Congressman went further describing cryptocurrency investments as a Ponzi scheme since the majority of investors buy digital assets only to sell them later at a higher price:

“Cryptocurrency is a meme you invest in, in the hopes that you can sell it to somebody else before it tanks. That’s the nice thing about a Ponzi scheme.”

Contrary to Sherman’s viewpoint, Alex Gladstein (CSO of Human Rights Foundation) opined the primary cryptocurrency could be a highly beneficial financial tool for residents of developing economies and such where economic turbulence reigns:

“For people in places like Iran, Palestine, Cuba or China, bitcoin is not their first [option], it’s their plan B. I’m sure they’d love to just use the dollar like we do in America. But guess what, they [can’t]. And bitcoin is a really nice thing to have.”

Congressman Sessions Does not Support Sherman’s Vision

Earlier this year, Pete Sessions – Congressman representing Texas’ 17th Congressional District – claimed that bitcoin could be a key factor in reshaping America’s energy independence. Unlike Sherman, he opined that the leading digital asset is “aligned with American values and will strengthen the dollar.”

His viewpoint received backing from Senator Cynthia Lummis – an outspoken proponent of bitcoin and even a HODLer.

She entered the ecosystem in 2013 by purchasing 5 BTC when its price was around $300. In 2021, she topped up her stash with up to $100,000 worth of the cryptocurrency.

Featured Image Courtesy of Indian Express