Senator Sherrod Brown, who is the chairman of the Senate Banking Committee and a Democrat, thinks that the Republican camp is a believer of cryptocurrency and their whole group appears unconcerned about the risk posed by the crypto sector.
Senate Banking Committee Democrats are worried that their Republican colleagues are not considering the risks linked with cryptocurrency seriously.
Senator Sherrod Brown’s view on the crypto sector
He told the following to the sources about the crypto sector by drawing an analogy with the OTC derivatives market, which contributed to the 2008 financial collapse:
“Unlike Republicans, we realise that when billionaires are produced out of [crypto industry], if we question where the money comes from, these individuals making billions of dollars, they stare at you blankly.”
Brown also stated that TerraUSD’s recent depreciation underscores the significance of this danger to the financial system because it is currently unregulated. He informed that there is a need for a lot of financial legislation in this sector. Brown also informed the followings about their effort for legislation:
“I understand that we won’t be able to enact any laws due to the cryptocurrency lobby here. That doesn’t mean we aren’t making legislative efforts. However, we may collaborate with the SEC, the Fed, the FDIC, the CFTC, and the Agriculture Committee.”
Demand for crypto legislation in the Banking Committee hearing
In a Banking Committee hearing on May 10, Catherine Cortez Masto expressed a legal framework for stablecoins. She informed the committee that the crypto industry has now surpassed the subprime mortgage market, which was the catalyst for the global financial catastrophe.
