Dollar hegemony is threatened, and members of Congress have opened their minds to prohibit all Americans from buying cryptocurrencies.

On Thursday, at the US Congressional Financial Services Committee hearing, US Congressman Bradley Sherman from California called on Congress to enact a bill prohibiting Americans from buying cryptocurrencies.

Screenshot 2019-05-10 at 3.00.18 PM

Image source: pixabay

On Thursday, Congressman Bradley Sherman asked Congress to introduce a bill that would ban cryptocurrencies. He said:

"I hope that we will join me in proposing a bill prohibiting Americans from buying cryptocurrencies… in part because our international influence is largely due to the fact that the dollar is the standard unit of international finance and transactions."

Bradley Sherman has been against cryptocurrency for at least a year. Sherman announced in a subcommittee of the Financial Services Committee last July that he believes the United States should ban all mining and trading of cryptocurrencies. Sherman claims that the primary use of cryptocurrencies is tax evasion, and the only way to stop this behavior is to ban all US citizens from using and participating in cryptocurrencies. Several other members of the Subcommittee questioned Sherman's analysis of cryptocurrencies, which they believe need to be studied before making such a comprehensive statement.

Although Sherman’s colleagues made these comments in July last year, Sherman continued his proposal last Thursday, saying:

“Whether it makes our foreign policy, our tax enforcement, or our traditional law enforcement lose our influence, the advantage of cryptocurrency over sovereign currency is simply to help deprive the United States and the rule of law.”

Ironically, this sentence can almost be seen as a free advertisement for Bitcoin by US lawmakers. Sherman gave a good overview of some of the reasons Bitcoin was originally created. Bitcoin was born in the economic chaos of 2008, and it was born to solve the inherent problems accompanying the central monetary system.

Many people criticize Sherman's position, and some point out that his biggest political donor is an organization that bets on the successful central bank model. In addition, one of these donors is credit card processing company Allied Wallet, which had previously had to pay a $13 million fine because they facilitated illegal gambling.

Sherman went on to say that his main concern with cryptocurrencies was that it was used for illegal activities. For years, this claim has been throughout the Bitcoin debate. However, with the development of blockchain analysis and the expansion of KYC certification to many legal portals, Bitcoin's privacy is not as good as cash.

In summary, the legality of cryptocurrency in the United States needs further clarification. It is hoped that the United States will adopt an innovative attitude towards this asset class rather than making any one-size-fits-all statement. It is only a proposal to prohibit US citizens from using cryptocurrencies, and there is currently no reason to assume that it will eventually become a bill.