US Senator Calls For Comprehensive Crypto Regulation To Protect Consumers
U.S. Senator Sherrod Brown (D-OH), chairman of the Senate Committee on Banking, Housing and Urban Affairs, delivers statements Tuesday in context of what he called “The Crypto Crash: Digital Assets as a Financial Security System.” Why is there a need for a regulator?
Highlighting this context, the senator states that the crypto currency industry has exploded and noting that the crypto market and its economy certainly present a major discontinuity in 2022, including the collapse of crypto currency exchanges and also of course there were multiple types of fraud scams involved and definitely by combining all the figures $1.46 trillion in lost value and dropped more than 1600 jobs and employment being agricultural farms. The legislator further elaborates that as the price of crypto crashed last year and platforms started collapsing and the rest of the crypto currency ecosystem suffered more losses and we can definitely say that the rest of the crypto currency farm customers Withdrawals are being blocked and at the same time customers are not able to establish control over their funds. Nothing that cryptocurrencies have not been used in the wider financial system, the senator further states that if we say that the crypto system is transferred to the banking system, then there is a glimpse of the damage that can be done and with this he warns. We are sure that this nightmare will never end because of course we are learning that… We are still completely gutted by the collapse of FTX and absolutely feeling the downfall. The senator emphasized that they were overleveraged and undercapitalized, had no internal risk controls in place, and were irresponsible with customer money. In the case of FTX, they used it to line their own pockets and now millions of Americans may never get their money back as it has gone into the wrong hands and we can understand from this crypto currency catastrophe that we could save everything before in which certain There are usually many things involved. These crypto catastrophes have exposed what many of us already knew and that digital assets – cryptocurrencies, stablecoins and investment tokens – are speculative products run by reckless companies that put American earnings at risk. Putting in and taking away the rules is certainly no surprise that all of this happens. Senator Brown further added, “The recent crypto events have forced us to think that we definitely need a regulator to protect the financial system which is applicable from a broader perspective and for this the company has to provide safeguards.”.
The legislator said that “the current crypto rules are certainly present but they are not enough specifically for crypto currency assets and we need to adopt more stringent rules for this which will definitely be a framework that puts consumers first and keeps our financial system safe.” The senator has long been skeptical of cryptocurrencies, and in December last year suggested that cryptos should “probably” be banned. While he admitted that it is difficult to completely ban it because it will go offshore.
