Crypto-skeptic Brad Sherman: Federal financial regulators 'sound like Sam Bankman-Fried'

US lawmaker suggested four financial regulators did little to fight 'crypto billionaire brethren' using digital assets to evade penalties and taxes.

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California Representative Brad Sherman, who has repeatedly called for a ban on US residents buying crypto, has accused executives of several financial agencies of picking up ideas from former FTX CEO Sam Bankman-Fried, on the regulation of digital assets.

In a Nov. 16 hearing before the House Financial Services Committee, Sherman directed his remarks to Federal Reserve Vice Chairman for Oversight Michael Barr, the acting Chairman of the Federal Deposit Insurance Corporation, Martin Gruenberg, National Credit Union Administration Chairman, Todd Harper, and Acting Comptroller. of the Michael Hsu mint. The US lawmaker suggested the four regulators had done little to combat "crypto billionaire brethren" using digital assets to evade sanctions and taxes who "just want the appearance of a regulations" rather than clearly defined rules.

"The crypto billionaire brothers are determined to get a lightweight regulator," Sherman said. "I'm distressed by what I've heard from you gentlemen: guardrails, safe and sane ways to handle crypto…. you talk like Sam Bankman-Fried, except you're wearing long pants instead of long pants. 'shorts. What a vague pablum."

Rep. Brad Sherman addressing the committee House Financial Services on Nov. 16

Barr says FTX's collapse had "some impact" on banking industry, calling on Congress to step in and clarify regulations . Sherman pointed out that the Basel Committee on Banking Supervision offers "strict and real standards" for banks to handle crypto assets. Barr, Gruenberg, Harper and Hsu said they would support regulation of comparable strength in the United States.

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