Crypto companies reeling from the historic collapse of FTX and its aftermath received another unexpected development on Sunday’s talk shows.
Senator Sherrod Brown, chairman of the Senate banking committee, asked the question on NBC Meet the press today on how legislators should approach crypto after the FTX crash.
Host Chuck Todd asked the legislator if crypto regulation would “give the green light” to what many think should be banned.
Brown, referring to government agencies—the Treasury Department, the Securities and Exchange Commission, and the Commodity Futures Trading Commission—answered“We want them to do what they need to do…probably ban.”
His comments follow those of Senator Jon Tester, who serves on the same banking committee and was asked by Todd last weekend whether cryptocurrencies should be regulated or banned.
“This or that,” he answered. “For me, it couldn’t pass the odor test…I don’t understand why this thing exists. I really don’t.”
Cryptocurrencies are ‘investments in nothing’
But it’s not just lawmakers in Washington, DC—many top business leaders feel the same way.
In September, JPMorgan Chase CEO Jamie Dimon called electronic money a “decentralized Ponzi scheme” is not “good for anyone”.
Charlie Munger, vice president of Berkshire Hathaway and business partner of Warren Buffett, said this summer: “Cryptocurrency is an investment in zero…I think anyone selling this is either delusional or evil. I have no interest in undermining the national currencies of the world.”
Munger has gone so far as to praise Chinese leader Xi Jinping for “smart enough” Ban Bitcoin in China.
But Brown on Sunday admitted banning the cryptocurrency is “very difficult because it’s going overseas and who knows how it will work…It’s a complicated, unregulated vault.”
FTX founder Sam Bankman-Fried is based in the Bahamas, where he is said to lead a lavish lifestyle in a penthouse and according to federal prosecutors, misuse of billions of dollars in the client’s funds.
Bahamian government catch him on monday following the official announcement by the US government that it has filed criminal charges against him and will likely request his extradition. The United States and the Bahamas had a extradition process in place since 1994.
Cryptocurrencies ‘don’t get free cards’
Brown this week thanked the US and Bahamian officials behind the arrest, add a statement, “I believe Mr. Bankman-Fried will soon be brought to justice. He clearly owes the American people an explanation.”
He added, “Things that look and function like securities, commodities or banking products need to be regulated and monitored by agencies responsible for serving consumers… Cryptocurrencies are not regulated. free pass because it’s bright and sparkling.”
Brian Armstrong, CEO of Cryptocurrency Exchange CoinbaseNote in tweet last month that FTX is “a foreign exchange that is not regulated by the SEC.”
His company is based in the US and is a publicly traded company with more transparency than FTX. This week, Coinbase shared fell to an all-time low.
“The problem is that the SEC has failed to create regulatory clarity in the United States, so many American investors (and 95% of trading activity) have gone offshore,” he wrote. “Punishing American companies for this is pointless.”
Our new Weekly Impact Report looks at how ESG news and trends are shaping the roles and responsibilities of today’s executives. Sign up here.
