US Congressman claims crypto is for Elon Musk and Goldman Sachs

Rep. Brad Sherman (D-CA) cast a harsh word on the crypto industry during a House Financial Services Committee hearing on digital assets:

They think this is kind of new and trendy and an assault on society’s power. The reality is that crypto advocates represent the powers that be in our society. The great powers of our society on Wall Street and Washington have spent millions trying to make trillions over trillions. These include Goldman Sachs, BlackRock, Visa, Citadel, Musk, and Zuckerberg. It’s impossible not to mention the CEOs who are ahead of us today.

Sherman criticized Coinbase CEO Brian Armstrong for failing to attend the hearing in person and later targeted Tether for failing to send his representative:

If you’re wondering where the power is, Zuckerberg had to get out of here and stay seated. Brian Armstrong sent his number two. And Tether didn’t show up at all.

He then reiterated that the number one threat to cryptocurrencies is the cryptocurrencies themselves, as bitcoin can be replaced by ether, which is not the case for fiat currencies.

Whales and volatility risk

When asked by Rep Al Green (D-TX) about the bubble in the crypto market, Brian Brooks of Bitfury said that a person who gives up their position can have a huge impact on price.

He argues that the US market needs more liquidity and pricing, not less.

Sam Bankman-Fried, CEO of FTX, says there is full transparency about the open interest on FTX and other major exchanges.

Representative Emmer (R-MN) asked Bankman-Fried about the railings that FTX.US is using to protect customers.

Blockchain and supercomputers

Bankman-Fried also spoke about the impact of supercomputers on the blockchain:

It has the potential to make new cryptographic algorithms faster and more efficient.

He then also said that all major blockchains are “super secure” in response to a question from representative Ritchie Torres (D-NY):

I do not know anyone. All major blockchain networks are super secure.

Other countries have an easier time

Brooks said that other countries like Germany and the United Arab Emirates have clear regulations on crypto assets and urged US regulators not to be left behind:

We’re the last country that hasn’t figured it out yet.