Senator Sherrod Brown Says FTX-Like Problems Are "Everywhere In Crypto," Praises SEC Crackdown On Industry

Senator Sherrod Brown Says FTX-Like Problems Are “Everywhere In Crypto,” Praises SEC Crackdown On Industry

Updated: 13 September 2023

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Senator Sherrod Brown lambasted crypto at a hearing on the oversight of the industry regulator, underscoring the powerful political support behind a crackdown on crypto by the Securities and Exchange Commission (SEC).

“It seems like every day, before and after the collapse of FTX, there is another crypto scam, hack, or insider taking advantage of people,” said Brown, chairman of the influential Senate Committee on Banking, Housing, and Urban Affairs, on Sept. 12. “That’s because the problems we saw at FTX are everywhere in crypto – the failure to provide real disclosure, the conflicts of interest, the risky bets with customer money that was supposed to be safe. FTX was just the biggest and the ugliest.”

Senator from Ohio. Chair of the Senate banking committee and avid backer of Gary Gensler.

— Cryptocurrency News Channel (@CryptoNewsBob) September 12, 2023

The Ohio lawmaker praised Gensler’s work as SEC chair and launched a blistering attack on the crypto industry.

“Bad actors keep flocking to crypto,” he said. “They use it to launder money, evade sanctions, fund crime and human trafficking and terrorism. We need to protect workers and families in these markets and clean up the scams and frauds. As Congress considers digital asset legislation, I’m glad the SEC is using its tools to crack down on abuse and enforce the law. ”

SEC Not Softening Its Stance

At the hearing, Gensler showed no signs of softening his stance toward the crypto industry, saying that the industry has “wide-raging non-compliance” issues and that most crypto tokens are securities.

“Given this industry’s wide-ranging noncompliance with the securities laws, it’s not surprising that we’ve seen many problems in these markets,” he said. “We’ve seen this story before. It’s reminiscent of what we had in the 1920s before the federal securities laws were put in place.”

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