Sherrod Brown, chairman of the United States Banking Committee, has proposed that the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) consider a cryptocurrency ban.
Brown mentioned FTX's spectacular collapse as an example of why a ban would be helpful but stressed that it "is only one huge part of this problem."
Brown made the remarks during an appearance on NBC's "Meet the Press" on Dec. 18, though he immediately noted that a ban would be tough to implement.
"We want them to do what they need to do at the same time, maybe banning it, although banning it is very difficult because it would go offshore, and who knows how that would work," the U.S. senator said.
The head of the Banking Committee has been skeptical of cryptocurrencies for more than a year, most recently raising issues with stablecoin issuance and cryptocurrency advertising and marketing activities.
Brown said that he shares the "same thought" as Senator Jon Tester, who thinks cryptocurrencies should be outlawed, in answer to a host's earlier query.
The Ohio representative claimed that for the past 18 months, he has been "educating" his peers and the general public about the risks associated with cryptocurrencies and urging swift and decisive action.
"I've already gone to the Treasury and the Secretary and asked for a government-wide assessment through all the various regulatory agencies [....] The SEC has been particularly aggressive, and we need to move forward that way and legislatively if it comes to that," he added.
He said cryptocurrencies are "dangerous" and a "threat to national security," listing North Korean cybercriminal activities, drug trafficking, human trafficking, and terrorism financing as examples of problems they've aggravated.
Brown issued a statement on Nov. 30 advocating for an "all-of-government" approach to industry regulation, and on Dec. 13 he applauded the U.S. Department of Justice for initiating criminal charges against former FTX CEO Sam Bankman-Fried, who is presently being held in the Bahamas awaiting extradition to the United States.
Senator Brown's colleagues do not all appear to agree with him.
Senator Tom Emmer said on Nov. 23 that FTX's demise was not a "crypto failure," but rather a failure caused by centralized actors.
Emmer believes that overbearing regulation will inhibit industry innovation in the U.S. and result in it losing its position as the world's dominant market, which many believe is already happening.
