{"id":17739,"date":"2023-02-16T22:57:56","date_gmt":"2023-02-16T22:57:56","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/us-senator-calls-for-comprehensive-crypto-regulation-to-protect-consumers-regulation-bitcoin-news\/"},"modified":"2023-02-16T22:57:56","modified_gmt":"2023-02-16T22:57:56","slug":"us-senator-calls-for-comprehensive-crypto-regulation-to-protect-consumers-regulation-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/us-senator-calls-for-comprehensive-crypto-regulation-to-protect-consumers-regulation-bitcoin-news\/","title":{"rendered":"US Senator Calls for Comprehensive Crypto Regulation to Protect Consumers \u2013 Regulation Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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The chairman of the U.S. Senate Committee on Banking, Housing, and Urban Affairs, Sherrod Brown, has called for a comprehensive regulatory framework for cryptocurrencies. \u201cRecent crypto meltdowns have made clear that we need a comprehensive framework to regulate crypto products to protect consumers and our financial system,\u201d said the senator.<\/strong><\/p>\n

US Lawmaker Wants Comprehensive Regulatory Framework for Crypto<\/h2>\n

U.S. Senator Sherrod Brown (D-OH), chairman of the Senate Committee on Banking, Housing, and Urban Affairs, talked about crypto regulation Tuesday in his opening statement at the congressional hearing titled \u201cCrypto Crash: Why Financial Safeguards are Needed for Digital Assets.\u201d<\/p>\n

\u201cThe cryptocurrency industry has imploded,\u201d the senator began, noting that the crypto market lost $1.46 trillion in value in 2022 and crypto firms have slashed over 1,600 jobs. The lawmaker detailed:<\/p>\n

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As crypto values crashed last year, platforms began collapsing, creating more losses across the rest of the crypto ecosystem. The crypto firms that are left have had to halt customer withdrawals, freezing people out of their own money.<\/p>\n<\/blockquote>\n

While noting that crypto contagion did not infect the broader financial system, the senator from Ohio said: \u201cWe saw glimpses of the damage it could have done if crypto migrated into the banking system.\u201d He warned: \u201cThis nightmare isn\u2019t over yet \u2026 We are still learning the full extent of the fallout from the FTX collapse.\u201d<\/p>\n

Noting that \u201cAs these crypto firms filed for bankruptcy, regulators, and policymakers have also learned how out-of-control some of those businesses were,\u201d the senator emphasized:<\/p>\n

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They were over-leveraged and undercapitalized. They had no internal risk controls. They were careless with customers\u2019 money. In the case of FTX, they used it to line their own pockets. Now the money of millions of Americans is trapped and they might never get it back.<\/p>\n<\/blockquote>\n

\u201cThese crypto catastrophes have exposed what many of us already knew: digital assets \u2014 cryptocurrencies, stablecoins, and investment tokens \u2014 are speculative products run by reckless companies that put Americans\u2019 hard-earned money at risk. Not surprising from an industry that was created to skirt the rules,\u201d Senator Brown further opined, adding:<\/p>\n

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Recent crypto meltdowns have made clear that we need a comprehensive framework to regulate crypto products to protect consumers and our financial system.<\/p>\n<\/blockquote>\n

The lawmaker noted that existing rules can apply to crypto, stating: \u201cCrypto isn\u2019t special \u2026 We can start with these commonsense principles as we consider a regulatory framework for digital assets that puts consumers first and keeps our financial system safe.\u201d<\/p>\n

Senator Brown has long been skeptical about cryptocurrency. In December last year, he suggested<\/a> that crypto should \u201cmaybe\u201d be banned. However, he acknowledged that it is very difficult to ban crypto because it will go offshore.<\/p>\n

What do you think about U.S. Senator Sherrod Brown calling for a comprehensive regulatory framework for cryptocurrencies? Let us know in the comments section below.<\/strong><\/em><\/p>\n

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\nKevin Helms <\/h6>\n

\nA student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

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