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Senator Tina Smith: Total ban on cryptocurrencies is impossible

Wednesday, 21 December 2022

Regulators Can't Ban Cryptocurrencies, but Stricter Rules Needed, Says Senator Tina Smith

Senator Tina Smith of Minnesota recently commented on the cryptocurrency industry and the need for regulation, stating that while a total ban on cryptocurrencies may not be possible, regulators should apply stricter rules. The collapse of the FTX exchange and the arrest of its founder Sam Bankman-Fried have raised concerns about the lack of oversight in the industry.

In her remarks, Senator Smith acknowledged that a significant portion of Americans, around 40 million, have some form of investment in cryptocurrencies. This, she says, makes it difficult to simply do away with digital assets. However, she stresses the need for consumer protection, citing the unethical practices of companies like FTX.

"We know how to protect consumers from shady financial transactions and unethical companies like FTX. The SEC has the experience and broad staff to play a key role in protecting investors. I'm not saying the CFTC doesn't play an important role. I just want to convey that there are fundamental means of protecting clients from robbery, and they must be respected," senator said.
senator said.

Cryptocurrencies as Commodities

When asked about the classification of cryptocurrencies as commodities under the US Commodity Futures Trading Commission (CFTC), Senator Smith emphasized the importance of consumer protection, rather than focusing on regulatory bodies. She noted that the US Securities and Exchange Commission (SEC) has the necessary experience and resources to regulate the industry and play a crucial role in protecting investors.

Protecting Investors and Consumers

"We know how to protect consumers from shady financial transactions and unethical companies like FTX," Senator Smith said. "The SEC has the experience and broad staff to play a key role in protecting investors." She also stressed the importance of respecting fundamental means of protecting clients from robbery and unethical practices.

Cryptocurrencies and Social Media

Senator Smith has been vocal about her concerns regarding the use of cryptocurrencies on social media platforms. Last year, she joined other US senators in demanding that Facebook immediately stop testing the Novi cryptocurrency wallet. In November, she also approached Fidelity Investments, urging them to remove Bitcoin from retirement plans.

Conclusion

While a total ban on cryptocurrencies may not be feasible, Senator Tina Smith believes that stricter rules and regulations are needed to protect consumers and investors from unethical practices. The collapse of FTX and the arrest of its founder have brought these issues to the forefront, highlighting the need for oversight in the industry. The SEC, with its experience and resources, can play a key role in regulating the industry and protecting investors.