Cryptocurrencies have won over millions of people, however, that still does not include many of the institutions, or politicians. The US Congressman Brad Sherman is a perfect example of this, as the Democrat continues to actively bash Bitcoin. His latest efforts have seen him trying to convince his colleagues that digital currencies should be fully banned in the US.
Today in Congress Rep. Sherman called for a bill to ban all cryptocurrencies.
This is why Coin Center is needed in DC now more than ever. pic.twitter.com/jgikm7z8bI
— Coin Center (@coincenter) May 9, 2019
Yesterday, May 9th, the Congressman attended a meeting of the House Financial Services Committee, where he spoke against cryptocurrencies, urging other attendees to help him pass a law that would ban cryptos. According to him, the ban is highly necessary, as digital currencies threaten to undermine the USD. Further, Sherman argues that cryptos are only useful to criminals, money launderers, drug dealers, and tax evaders.
Crypto threatens the USD, claims Sherman
According to the Congressman, crypto supporters and promoters do not exactly make it a secret that they wish to replace traditional currencies with digital ones. Of course, he believes that this is not acceptable. During his speech, Sherman noted that a lot of the US’ power on the international level comes from the fact that the USD is the standard unit of international finance and transactions.
He then claimed that the cryptocurrency supporters want to take that power away from the US. He points out that this would make some of the most significant sanctions completely irrelevant. In other words, Sherman thinks that the only real purpose of cryptocurrencies is to aid criminals, disrupt the law, and disempower the US.
Sherman argues that crypto is the tool of terrorists
Another one of Sherman’s claims is that he noticed a major increase in the use of digital currencies for supporting criminal and terrorist activity. To prove his point, the Congressman used the example of Hamas, the Palestinian terrorist group, which announced that it would accept donations in Bitcoin, as a result of financial isolation caused by the US sanctions.
Since Hamas is believed to be funded by Iran, which is going through a financial crisis due to sanctions, cryptocurrencies emerged as a working solution, and Iran itself started mining BTC. Sherman claims that this is an example of how the US foreign policy is being disempowered by digital currencies.
The criminal use of cryptocurrencies
Sherman made sure to make a point about digital currencies having legitimate purposes, but he also noted that it is an excellent tool for those wishing to commit a crime. He made these points before, particularly on May 3rd of this year, he tweeted about Facebook’s decision to make its own coin. According to him, Facebook is desperate to show that it believes in privacy, and it is willing to help tax evaders and terrorists in order to do it.
— Rep. Brad Sherman (@BradSherman) May 3, 2019
Cryptos are supported by many among the Republicans
Of course, there is one more reason why Congressman Sherman stands strongly against crypto, and that is the fact that many of the Trump officials actually support digital coins. Republicans have typically been very pro-business and open-minded when it comes to new and innovative technologies, and digital currencies are no different. Democrats, on the other hand, are quite the opposite.
One good example is one of the five SEC commissioners, Hester Peirce, who was appointed by the President himself. Peirce has always been pro-Bitcoin, which is a stance that earned her a nickname ‘Crypto Mom.’ As for the ‘Crypto Dad,’ the title went to CFTC chairman, Christopher Giancarlo, who is also pro-Bitcoin, and also a Republican.
While Giancarlo is getting retired soon, the chances are that he will be replaced by Heath Tarbert. While Tarbert’s stance on crypto is not known at the moment, it is likely that Tarbert might be another supporter.