Brad Sherman, a U.S. Representative for California's 30th congressional district, has said that cryptocurrencies are “highly volatile” and should be completely shut down.
Sherman aired his views during a June 30 hearing hosted by the House Financial Services Oversight Subcommittee. The Congressman would rather have people place bets in the stock market or the California lottery than invest in the crypto industry. He said:
Cryptocurrencies are highly volatile. So, if one person makes $1 million and retires at age 49, and nine lose $100,000, Coinbase makes money. The millionaire goes on TV and tells how wonderful it is, and the nine others do not retire in dignity but instead become eligible for Medicaid...I hope we shut it down.
Sherman’s logic of exchanges making money from the losses of customers is obviously flawed. Crypto exchanges generally make money from fees and trading commissions. But according to Sherman, cryptocurrencies are only suitable for evading taxes and circumventing KYC guidelines.
Cryptocurrencies have the political support of patriotic anarchists who are rooting for tax evasion. I hope we shut it down.
While Sherman dropped arguments against cryptocurrencies, Congressman Tom Emmer noted that cryptos make it easy for consumers to access financial services.
In general, tech lowers the barriers to entry to the traditional financial system and offers all consumers, no matter where they are, the ability to access convenient financial services at low competitive rates, and cryptocurrency is no exception.