US Rep Brad Sherman Takes Shot At Crypto Bros, Argues Government Can Make ‘Money Out Of Thin Air’
US Rep Brad Sherman, a Democrat from California, recently made headlines with his controversial remarks on cryptocurrencies. Speaking at a meeting of the House Financial Services Committee, Sherman took a shot at what he called “crypto bros,” arguing that the government has the power to create money out of thin air, and that cryptocurrencies were nothing more than a tool for criminals and tax evaders.
In his opening statement, Rep Sherman stated that “cryptocurrencies are a crock. They’re nothing but a Ponzi scheme that benefits a few people at the expense of everyone else.” He went on to say that “the whole point of cryptocurrencies is to facilitate illegal activity, such as money laundering, drug trafficking, and tax evasion. It’s time for Congress to take action and shut these scams down.”
Rep Sherman’s statements are not surprising given his previous comments on cryptocurrencies. He has been a vocal critic of Bitcoin and other digital assets, stating in 2018 that “cryptocurrencies are a haven for criminals and rogue states that want to circumvent international sanctions. We should ban them outright.”
While cryptocurrencies have come under scrutiny from regulators and governments around the world, Rep Sherman’s comments have drawn criticism from the crypto community. Many have argued that cryptocurrencies have the potential to revolutionize the financial industry and provide greater financial freedom to individuals around the globe.
In response to Rep Sherman’s accusations, the CEO of the cryptocurrency exchange Binance, Changpeng Zhao, took to Twitter to call out the congressman’s hypocrisy. He pointed out that “the US dollar is the world’s reserve currency, but the US government has printed trillions of dollars out of thin air in recent years, devaluing the currency and hurting ordinary Americans.”
Zhao’s comments highlight a key point in the debate over cryptocurrency and government regulation. While cryptocurrencies may have their flaws, they are not unique in their potential to be used for illicit activities. Cash, for example, is not traceable and can be used to facilitate criminal activity just as easily as Bitcoin or other digital assets.
Furthermore, the government’s ability to print money out of thin air has its own drawbacks. The US federal government has a national debt of over $26 trillion, which is only growing larger with each passing year. Printing more money to pay off this debt will only further devalue the currency and harm the purchasing power of the American people.
In addition, the US government’s control over the money supply has led to corruption and abuse of power in the past. The Federal Reserve, the central bank of the United States, has been accused of engaging in unethical and predatory practices, such as bailing out big banks during the 2008 financial crisis while leaving ordinary Americans to suffer.
In contrast, cryptocurrencies offer a decentralized alternative to government-controlled money. The blockchain technology behind cryptocurrencies allows for secure and transparent transactions without the need for intermediaries like banks.
While cryptocurrencies are not without their risks, they have the potential to reduce financial inequality and provide greater financial freedom to individuals around the globe. Banning cryptocurrencies outright, as Rep Sherman suggests, would be a shortsighted move that would stifle innovation and harm those who stand to benefit the most from this emerging technology.
In conclusion, Rep Brad Sherman’s recent comments on cryptocurrencies highlight the ongoing debate over the role of government in regulating digital assets. While cryptocurrencies have their flaws, they offer a decentralized alternative to government-controlled money that has the potential to empower individuals and reduce financial inequality. Rather than dismiss cryptocurrencies as a tool for criminals and tax evaders, policymakers should take a nuanced approach that balances the benefits and risks of this emerging technology.
U.S. Congressman Brad Sherman, a California Democrat who is known for being a vocal critic of cryptocurrencies, has expressed doubts over the future of digital assets in the United States. Sherman made his remarks during a joint hearing of two committees in the U.S. House of Representatives that sought to streamline legislation on digital assets.
During the hearing, Sherman referred to cryptocurrencies as a “hidden money system” that diverts capital investment away from productive industries. He also pointed out that their “announced purpose” is to subvert sanctions and tax laws. Additionally, Sherman criticized the cryptocurrency industry’s “crypto bros” for making money out of thin air.
“Crypto bros make money literally by making money, and they’ve made over a trillion dollars,” said Sherman. “They’ll accuse the U.S. government of making money out of thin air. Maybe we do, but we’re the U.S. government.”
Sherman, who is the Chair of the House Financial Services Subcommittee on Capital Markets and Investor Protection, has been a vocal critic of cryptocurrencies and has made previous attacks on the industry. In November 2022, following the collapse of FTX, Sherman accused “billionaire crypto bros” of attempting to delay “meaningful legislation” from the Federal government.
However, Sherman’s criticisms of cryptocurrencies have not been universally accepted. Some experts argue that cryptocurrencies can serve as a hedge against inflation and provide financial access to those who are unbanked or underbanked. In addition, blockchain technology, which underpins cryptocurrencies, has a wide range of applications beyond digital assets.
Despite Sherman’s criticisms, cryptocurrencies continue to grow in popularity and adoption. Bitcoin, the largest cryptocurrency by market capitalization, recently surpassed $1 trillion in market value. Other cryptocurrencies, such as Ethereum and Dogecoin, have also seen significant price increases in recent months.
At the time of writing, Bitcoin was trading at $27,429.57, down 0.82% in the last 24 hours, according to Benzinga Pro. Despite the recent price decreases, some analysts remain bullish on cryptocurrencies, predicting that altcoins will continue to bleed against the apex crypto in a massive “reckoning.”
In conclusion, Congressman Brad Sherman’s criticisms of cryptocurrencies highlight the ongoing debate over the future of digital assets in the United States. While some experts see cryptocurrencies as a valuable innovation, others argue that they pose significant risks to global financial stability. As the crypto industry continues to evolve, it remains to be seen how policymakers will balance these competing interests in the years to come.