Senator Sherrod Brown, who leads the Senate Banking Committee, has consistently challenged powerful lobbying groups and industries throughout his career. Now, he appears to be facing his most significant battle yet regarding the oversight of cryptocurrency firms. These companies contributed $40 million to the campaign of his Republican challenger, Bernie Moreno, who emerged victorious in the recent elections.
The cryptocurrency sector has actively lobbied both parties to maintain a hands-off approach to regulation. Notably, it has supported various candidates from both sides of the political spectrum, including Democrat Elissa Slott, who secured a Senate seat in Michigan. Funds from the cryptocurrency realm were also directed toward Mr. Kin.
Most infamously, Sam Bankman-Fried, the founder of FTX who is now serving time in a federal prison in Brooklyn, was a major donor to the Democratic Party while covertly supporting Republican candidates as well.
Our stance is not one of opposition to technological advancement; rather, it stems from the fact that cryptocurrencies have a dismal performance record for a relatively new consumer product (which is essentially an unregulated speculative asset).
Countless billions of dollars have been lost in multiple crypto market crashes, with the most notorious case being the collapse of FTX, where Bankman-Fried, a once-enthusiastic proponent of the crypto movement, ended up in prison for misappropriating consumer funds. FTX has become a glaring example of the industry’s failures.
As it stands, the cryptocurrency sector has struggled to prove it can operate in a trustworthy manner that protects consumer interests. Many cryptocurrencies and exchanges market their products as currencies, despite the fact that they are seldom used for transactions, or they claim to offer stocks with actual backing.
While consumers can choose to take risks, they should do so with full awareness and in a context that is at least somewhat regulated.
In New York, large corporations have dedicated months to securing one of the limited licenses to open a casino, yet anyone with the required technical skills and server capabilities can swiftly launch a cryptocurrency and start selling it to the public with minimal oversight.
There may be avenues for the cryptocurrency industry to function responsibly, but thus far, the solution of self-regulation has proven ineffective. Meanwhile, advocates for increased regulations, like Senator Brown, have become increasingly quiet.
Looking at the bigger picture, the impending Trump administration indicates a move towards minimizing regulatory authority and activities in most areas, with immigration being a notable exception. This raises concerns about the potential rise of fraud, deception, and white-collar crime should regulations be relaxed further.
An administration focused on dismantling existing structures is unlikely to address the overwhelming issue of spam calls, unsolicited messages, and the chaos brought on by artificial intelligence that currently affects the lives of many Americans.
Significant profits can be reaped from this ongoing scam. Every dollar spent on political campaigns seems to be an investment to ensure that the system continues to benefit a select few at the expense of the general public.
©2024 New York Daily News. Distributed by Tribune Content Agency, LLC.
Arabic
Chinese (Simplified)
Dutch
English
French
German
Italian
Portuguese
Russian
Spanish