US Senate Committee On Banking, Housing Urban Affairs Chairman Sherrod Brown Referred to as for a comprehensive regulatory structure for cryptocurrencies. “The recent crypto market crashes have made it clear that we need an effective framework to regulate cryptocurrency products to protect consumers and our financial system,” The senator declared.
US Senator Wants Comprehensive Regulatory System For Cryptocurrencies
US Senator Sherrod Brown (D-OH), Chairman of the Senate Banking, Housing, Urban Affairs CommitteeSpoke about crypto regulation Tuesday In his opening statement at the congressional hearing “Crypto Crash: Why Financial Safeguards are Need for Digital Assets”. .”
“The crypto market has endured a massive decline,” The senator began by noting that $1.46 trillion was lost in cryptocurrency markets in 2022, and that more than 1,600 jobs have been lost by cryptocurrency firms. The legislator detailed:
When crypto values plummeted last year, platforms started crashing, resulting in further losses across the rest of the cryptocurrency ecosystem. The The remaining crypto companies had to restrict customer withdrawals. This has resulted in people being blocked from accessing their funds.
While Noting that the cryptocurrency contagion did not infect the wider economic system, Ohio Senator stated: “We saw glimpses of the damage that could have been done if crypto migrated into the banking system.” He warned: “This nightmare is not over yet… We are still learning the full extent of the consequences of the FTX collapse.”
Noting That “as these crypto firms filed for bankruptcy, regulators and lawmakers also learned just how out of control some of those companies were,” The senator asserted:
They Consequently, they were both over-leveraged as well as undercapitalized. They No internal risk management. They They were careless with customer’s money. In In the case of FTX they used it to fill their own pockets. Now The money of tens or millions of Americans It was trapped, so they couldn’t get it back.
“These crypto catastrophes have exposed what many of us already knew: digital assets – cryptocurrencies, stablecoins and investment tokens – are speculative products run by reckless companies that put Americans’ hard-earned money at risk. . Not surprising in an industry that was built to circumvent the rules,” Senator Brown Added:
The The recent crypto market crashes have shown that we need a comprehensive framework for regulating crypto products to protect our customers and our financial system.
The Lawmaker suggested that existing regulations can be applied to cryptocurrencies. “Cryptocurrencies are not special… We can start with these common-sense principles as we consider a regulatory framework for digital assets that puts consumers first and keeps our Financial system”.
Senator Brown Since long, cryptocurrencies have been ridiculed by many. In December He suggested that cryptocurrencies be banned in the last year. “maybe” Should be banned. HoweverHe admitted that it would be difficult to ban cryptocurrency due to the fact that they will go overseas.
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