The collapse and destruction of FTX has made the voices of those who are against the market louder. Previously, calls for constructive regulation for the cryptocurrency market were at the forefront. Now, there are speeches in which the word ‘forbidden’ is used.
“Cryptocurrency ban is also on the table in the USA!”
The crypto market is going through more difficult times than ever before. The eventful bankruptcy of a number of high-profile crypto companies, the last of which is FTX, complicates matters even more. The aftermath of these crashes has led to increased calls for regulation for the market. However, banning did not come to the fore much among the options, although it was voiced. Senator Sherrod Brown (D-Ohio), chair of the Senate Committee on Banking, Housing and Urban Affairs, said on NBC’s ‘Meet the Press’ program that a ban on cryptocurrencies may be on the table.
However, the Senator also acknowledged that it would not be easy to ban cryptocurrencies completely. Sherrod Brown used the following statements in his statement:
Maybe it should be banned! However, it is very difficult to ban. Because it will be off-shore. So no one knows if the ban will work.
Hard to ban, but calls for regulating the market are growing
Ohio Senator Sherrod Brown also emphasized that crypto is a threat to national security. In late November, Brown called on Treasury Secretary Janet Yellen to help rein in crypto companies following the explosion of the FTX exchange, which sent shock waves across the crypto industry and beyond. After the collapse of Mt Gox, the world’s largest cryptocurrency exchange, in 2014, Senator Joe Manchin (D-WV) wrote a letter to federal regulators demanding a complete ban on Bitcoin.
However, even hardcore crypto critics agree that the industry has now become too strong. As we reported on cryptokoin.com, MP Brad Sherman (D-CA) recently said that the government refrained from banning Bitcoin in its early days, but crypto supporters are now spending too much money on lobbying efforts to make it happen.
Meanwhile, it is possible for governments to ban or restrict cryptocurrency activities, as some countries do. For example, the Chinese government has chosen this path. However, each country has a different approach to crypto based on their own financial and regulatory policies. In general, however, governments agree on regulating the crypto space. Therefore, it is possible to impose various restrictions. In addition, it is possible that some countries will take additional steps, such as banning crypto exchanges. Meanwhile, Federal Reserve Chairman Jerome Powell said last year that they have no intention of banning or limiting cryptocurrencies.