US Congressman: US Citizens Be Prohibited from Using Cryptos

Blockchain technology has brought about a number of cryptocurrencies that can potentially increase the speed of how people transact. In 2017, we’ve seen the rise of crypto’s popularity together with the rise in Bitcoin’s value reaching almost $20,000 in December. However, following the number of people using cryptocurrencies, regulators had no other choice but to take a closer look at the industry.

Today, cryptos are slowly becoming regulated in different parts of the world. Though there is no unified consensus regarding how regulators should handle the industry, a lot of countries are now leaning towards simply regulating cryptos rather than imposing a total ban.

However, a Democratic congressman has called for the total ban on the industry. This statement followed after the recent involvement of Bitcoin when Russians interfered with the 2016 Presidential election. Bitcoin was used by Russian operatives in order to pay for the hosting, domain and other things necessary to publish the leaked emails online.

Prohibit US Citizens from Using and Mining Cryptos?

Congressman Brad Sherman thinks that it is a good decision if the government is going to prohibit US citizens from mining as well as using the cryptocurrencies. This statement was made on Wednesday during a hearing of a subcommittee of the House of Representatives Financial Services Committee.

According to Sherman, “some of its supporters delight in that if you can disempower the US government from being able to prevent terrorism, narcotics trafficking, and tax evasion, you have somehow struck a blow for liberty”. For him, he thinks that it is “reason enough to ban it”.

Mining Needs a Large Amount of Power

One part of his argument is that mining is making use of a lot of energy. He said that mining creates a market for illicit activities. In addition to this, investors think that investors should just invest in risky stocks instead.

He then concluded that “The money that we make as a country because we’re the reserve currency, because we can issue a greenback that does not yield interest, there are people who are alive today because of the profits the US government makes on that whether it be to fund our defense for medical research” .

Cryptocurrency mining is said to use the same amount of energy as Iceland. In addition to this, there are countries that are looking to regulate the entry of crypto miners because of this. Quebec has been a popular destination for crypto miners recently as the Canadian province welcomed crypto miners. However, there is the fear that it would raise the cost of electricity paid by other users.

Is A Ban A Good Move?

Is a ban a good move? According to a report by the EU Parliament, it is a bad decision for regulators to ban cryptocurrencies and other related activities. As for Representative Emanuel Cleaver, he sent a letter to the Treasury’s Financial Crime Enforcement Network (FinCEN) and asked for the rules that will help prevent currencies from being used in illegal activities. He also acknowledged the “tremendous opportunities” that are offered by the crypto industry. However, he believes that there should be a balance.