Crypto Ban Won't Happen Anytime Soon, Says U.S. Congressman
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Crypto Ban Isn't Coming Anytime Soon
However, the sector is currently being supported by too much money and lobbying. Therefore, it is unlikely that there will be a ban on cryptocurrencies anytime soon. The politician from California is worried about thieves exploiting cryptocurrencies. He has repeatedly said that crypto aids terrorism and other evil deeds. Sherman, the industry's most outspoken opponent in Congress, has frequently called for a general ban on digital assets. He asserted that "anarchists" favor tax avoidance and support cryptocurrency.
A few weeks earlier, Sherman angered the XRP cryptocurrency community by asserting that the contentious token is unregistered security.
Tornado Cash Outlawed Last Month
Although the U.S. government is far from outright prohibiting cryptocurrencies, it did block the controversial Tornado Cash protocol last month, upsetting the industry's lobbyists. The famous coin mixing service was deemed "a substantial threat" to national security by the Treasury Department after North Korean hackers used it frequently to launder stolen cryptocurrency. Sherman picked out Tornado Cash as a subject that needed special attention.
Fed Rejects Ban On Cryptocurrency
The ban demonstrates that, despite vigorous lobbying, the American government can still regulate cryptocurrency. But there is considerable opposition in Congress. Republican Tom Emmer, who supports cryptocurrencies, began pressing the Treasury Department for an explanation of the Tornado Cash sanctions, which could have significant repercussions for the crypto industry.
The Fed refuses to impose a ban on cryptocurrency. Jerome Powell, the chairman of the Federal Reserve, stated in October last year that while regulating cryptocurrencies was essential, a complete prohibition was not feasible. Nevertheless, Powell noted in March that cryptocurrencies serve as "vehicles for speculation."