US Senator Calls for Comprehensive Crypto Regulation to Protect Consumers

The president of the U.S. Senate Committee connected Banking, Housing, and Urban Affairs, Sherrod Brown, has called for a broad regulatory model for cryptocurrencies. “Recent crypto meltdowns person made wide that we request a broad model to modulate crypto products to support consumers and our fiscal system,” said the senator.

US Lawmaker Wants Comprehensive Regulatory Framework for Crypto

U.S. Senator Sherrod Brown (D-OH), president of the Senate Committee connected Banking, Housing, and Urban Affairs, talked astir crypto regularisation Tuesday successful his opening connection astatine the legislature proceeding titled “Crypto Crash: Why Financial Safeguards are Needed for Digital Assets.”

“The cryptocurrency manufacture has imploded,” the legislator began, noting that the crypto marketplace mislaid $1.46 trillion successful worth successful 2022 and crypto firms person slashed implicit 1,600 jobs. The lawmaker detailed:

As crypto values crashed past year, platforms began collapsing, creating much losses crossed the remainder of the crypto ecosystem. The crypto firms that are near person had to halt lawsuit withdrawals, freezing radical retired of their ain money.

While noting that crypto contagion did not infect the broader fiscal system, the legislator from Ohio said: “We saw glimpses of the harm it could person done if crypto migrated into the banking system.” He warned: “This nightmare isn’t implicit yet … We are inactive learning the afloat grade of the fallout from the FTX collapse.”

Noting that “As these crypto firms filed for bankruptcy, regulators, and policymakers person besides learned however out-of-control immoderate of those businesses were,” the legislator emphasized:

They were over-leveraged and undercapitalized. They had nary interior hazard controls. They were careless with customers’ money. In the lawsuit of FTX, they utilized it to enactment their ain pockets. Now the wealth of millions of Americans is trapped and they mightiness ne'er get it back.

“These crypto catastrophes person exposed what galore of america already knew: integer assets — cryptocurrencies, stablecoins, and concern tokens — are speculative products tally by reckless companies that enactment Americans’ hard-earned wealth astatine risk. Not astonishing from an manufacture that was created to skirt the rules,” Senator Brown further opined, adding:

Recent crypto meltdowns person made wide that we request a broad model to modulate crypto products to support consumers and our fiscal system.

The lawmaker noted that existing rules tin use to crypto, stating: “Crypto isn’t peculiar … We tin commencement with these commonsense principles arsenic we see a regulatory model for integer assets that puts consumers archetypal and keeps our fiscal strategy safe.”

Senator Brown has agelong been skeptical astir cryptocurrency. In December past year, helium suggested that crypto should “maybe” beryllium banned. However, helium acknowledged that it is precise hard to prohibition crypto due to the fact that it volition spell offshore.

What bash you deliberation astir U.S. Senator Sherrod Brown calling for a broad regulatory model for cryptocurrencies? Let america cognize successful the comments conception below.

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