Cryptocurrencies are ‘humorous cash,’ that ‘mirrors’ Wall Road abuses, says Senate Banking Chairman

Senior Democrats in Congress again cabled their skepticism about cryptocurrencies and digital asset technology on Tuesday when Ohio chairman Sherrod Brown said the growing digital asset economy told a Senate banking committee that “Americans’ hard-earned money is at risk “. Tuesday listen.

“Alongside these alternative financial products, a home industry with decentralized financial systems has emerged in the hope of creating a parallel financial system with no rules, no supervision, and no borders,” said Brown. ”They claim to enable ‘transparency’. Your supporters speak of the ‘democratization of banking’, but there is nothing ‘democratic’ or ‘transparent’ about a seedy, diffuse web of funny online money.

Brown also attacked the notion that the growing crypto economy would prove to be an alternative for Americans who are skeptical of the power and practices of Wall Street financial institutions.

“People don’t trust banks, and they don’t trust the biggest banks especially,” Brown said. “But as these technologies evolve, most seem to reflect the Wall Street model – rather than question it.”

The Senate Banking Committee hearing coincided with a House Financial Services Subcommittee hearing on central bank digital currencies, underscoring Congress’s commitment to research and potential regulation of digital assets in general.

Also on Tuesday morning, Democratic Senator Elizabeth Warren from Massachusetts sent a letter To Treasury Secretary Janet Yellen in her capacity as Chair of the Financial Stability Oversight Council, calling on the FSOC to rapidly develop a “comprehensive regulatory system for cryptocurrencies”.