US Congressman Says Crypto Represents the Rich and not the Poor

House of Representatives member Brad Sherman has said that crypto is for the powerful in the society, a group that includes the likes of Elon Musk, Goldman Sachs, BlackRock, Mark Zuckerberg, and others. He made this statement during the House Committee on Financial Services hearing on digital assets.

Crypto Industry Represents the Power in the Society

In his scathing remarks about crypto, he claimed that while many believe that the cryptocurrency industry is an attack on the powers in society, crypto represents these powers instead.

They believe that somehow this is new and hip, and an attack on the powers of society. The fact is that the advocates of crypto represent the powers in our society. The powers of our society on Wall Street and in Washington have spent millions, and are trying to make billions and trillions.

The congressman further stated that crypto remains the number one threat to itself, citing examples of how it’s possible for Ether to displace Bitcoin as the number one cryptocurrency. He mentioned that this isn’t possible with fiat currencies.

In the last one year, the crypto industry has grown in leaps and bounds as it enjoyed a new wave of adoption among institutional and retail investors. The market cap of the entire industry has touched as high as $3 trillion and two digital coins, BTC and ETH, are amongst the top 15 assets by market cap in the world.

Blockchain Technologies are Secured — FTX

The hearing on digital assets saw several crypto CEOs entertain questions from congress members. FTX CEO Sam Bankman-Fried was one of the most notable names at the hearing. 

Bankman-Fried spoke about the potential impacts of supercomputers on blockchain tech. According to him, supercomputers could create faster and more efficient cryptographic algorithms. He also mentioned that all major blockchains are very secure when Rep. Ritchie Torres (D-NY) asked a question related to this matter. 

US Crypto Industry Needs Regulatory Clarity

Brian Brooks, the former Acting Comptroller of the Office of the Currency, called for more clarity in crypto regulations. According to him, other countries, including the UAE and Germany, have clear-cut regulations for digital assets, but the US is still far behind.

He, therefore, urged US regulators to figure this out very fast so as to prevent crypto firms from leaving the United States for more friendly jurisdictions. 

There were also questions about volatility risks, especially from whales in the crypto market. Brian Brooks of BitFury stated that although the actions of one whale could have serious impacts on the price, what the US market needs are more liquidity and price discovery instead of less.