A House Financial Services subcommittee of the United States Congress met for an overview of Cryptocurrencies yesterday. The two hour session started with some extremely ridiculous remarks.
It started with “Cryptocurrencies are a crook” in opening remarks from Rep. Brad Sherman. He went on to say, “They allow a few dozen men in my district to sit in their pajamas all day and tell their wives they’re going to be millionaires.”
Then, the had the usual concern of the claims of Bitcoins to help finance terrorism, criminals, tax evaders and startups looking to commit fraud. He also said that Bitcoin is a threat to Fed’s source of revenue.
The committee was called to discuss ICOs and not cryptocurrencies like Bitcoin. So coming to ICOs, Sherman said “By using the term ICO, they lie to the public and convey an image that its like an IPO.” He further expanded by saying “They stole the intellectual property and trademark of legitimate investing and applied it to a fixed, fraudulent gambling scheme of no social benefit.”
After the cryptocurrency market exploded last year, with Bitcoin’s price reaching an all-time high of $20,000, regulators started paying attention to the industry. SEC is keen on regulating cryptocurrencies and ICOs instead of a complete ban.