Bitcoin-Bashing U.S. Rep Sherman Calls For Outright Ban On Cryptocurrencies

United States Congressman Brad Sherman (D-CA) has urged his colleagues to consider completely shutting down cryptocurrencies, arguing that they are “highly volatile”. 

Sherman: Crypto Facilitates Tax Evasion

A congressional hearing hosted by the House Financial Services Oversight Subcommittee on June 30 performed an overview of the budding crypto ecosystem. Sherman observed that it would make much more sense to allow people In America to bet on the stock market or the California lottery rather than cryptocurrencies.

Sherman, who has previously described cryptocurrencies as “a crock”, explained:

“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.”

As a decentralized asset, bitcoin allows users to transfer value across the globe beyond the reach of the government and law enforcers. This has attracted criticism from observers who believe the cryptocurrency aids terrorists, drug dealers, money launderers and tax evaders. 

Tax evasion, as the California Democrat Congressman eloquently postulated, is what makes outlawing cryptocurrencies the obvious move for the U.S. “Cryptocurrencies have the political support of patriotic anarchists who are rooting for tax evasion. I hope we shut it down,” he said.

Can Cryptocurrencies Really Be Shut Down, And Thus Controlled?

Worth noting that this is not the first time Congressman Sherman has made negative remarks about cryptocurrencies, as he has called for a blanket ban on crypto several times in the past. 

Any crypto proponent is aware that the very nature of cryptocurrency protects it from centralized control. Though governments can block off-ramps and on-ramps like exchanges therefore making crypto transactions difficult, it’s utterly impossible to cut the flow of crypto assets owing to their decentralized nature. 

Countries like China, for instance, have moved to restrict cryptocurrency trading and mining. This has only triggered an exodus of bitcoin miners seeking refuge in friendlier countries. Moreover, crypto traders in China have crafted ways to circumvent restrictions against trading the assets.

That said, incessant calls to shut down bitcoin and trade restrictions are emblematic of many hiccups investors have had with the cryptocurrency. These are, however, considered short-term hurdles in a long-term game that promises financial freedom to people from all walks of life. 

Indeed, Minnesota Congressman Tom Emmer agrees. During Wednesday’s hearing, Emmer posited that crypto “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.”