{"id":9240,"date":"2022-12-18T14:24:54","date_gmt":"2022-12-18T14:24:54","guid":{"rendered":"http:\/\/cryptoheretostay.com\/?p=9240"},"modified":"2022-12-18T14:24:55","modified_gmt":"2022-12-18T14:24:55","slug":"us-senator-cryptocurrency-cannot-be-stopped-ftx-collapse-isnt-an-indictment-of-crypto","status":"publish","type":"post","link":"https:\/\/cryptoheretostay.com\/?p=9240","title":{"rendered":"US Senator: Cryptocurrency Cannot Be Stopped, FTX Collapse Isn&#8217;t an Indictment of Crypto"},"content":{"rendered":"<p> <script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"crypto\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script><br \/>\n<\/p>\n<p><strong>U.S. Senator Pat Toomey says illegal actions by crypto exchange FTX must be separated \u201cfrom perfectly lawful and innovative cryptocurrencies.\u201d Emphasizing that \u201cThe collapse of FTX is not an indictment of crypto,\u201d he noted that \u201ccryptocurrency cannot be stopped\u201d and \u201cthe technology would simply migrate offshore\u201d if Congress tried.<\/strong><\/p>\n<h2>Separating Illegal Actions From \u2018Perfectly Lawful and Innovative Cryptocurrencies\u2019<\/h2>\n<p>U.S. Senator Pat Toomey (R-PA) explained in his opening statement at the Senate Banking Committee hearing Wednesday that the collapse of crypto exchange FTX is not an indictment against cryptocurrency.<\/p>\n<p>\u201cThere was unauthorized lending of customer assets to an affiliated entity, and there were fraudulent promises to investors and customers about FTX\u2019s operations. These are outrageous and completely unacceptable,\u201d the senator described, emphasizing:<\/p>\n<p>I want to underscore a bigger issue here: The wrongful behavior that occurred here is not specific to the underlying asset. What appears to have happened here is a complete breakdown in the handling of those assets.<\/p>\n<p>\u201cIn our discussion of FTX today, I hope we are able to separate potentially illegal actions from perfectly lawful and innovative cryptocurrencies,\u201d he told the Senate committee.<\/p>\n<p>Noting that cryptocurrencies \u201care actually software,\u201d Senator Toomey explained: \u201cWhat we should all understand here is one simple thing: The code committed no crime. FTX and cryptocurrencies are not the same thing. FTX was opaque, centralized, and dishonest. Cryptocurrencies are open-source, decentralized, and transparent.\u201d<\/p>\n<h2>Should the FTX Fallout Justify Banning or \u2018Pausing\u2019 Crypto?<\/h2>\n<p>The senator from Pennsylvania proceeded to address suggestions that crypto should be banned following the FTX meltdown.<\/p>\n<p>\u201cTo those who think that this episode justifies banning crypto, I\u2019d ask you to think about several examples,\u201d he began. \u201cThe 2008 financial crisis involved the misuse of products related to mortgages. Did we decide to ban mortgages? Of course not. A commodity brokerage firm run by former New Jersey Senator John Corzine collapsed after customer funds \u2014 including U.S. dollars \u2014 were misappropriated to fill a shortfall from the firm\u2019s trading losses. Nobody suggested that the problem was the U.S. dollar and that we should ban it.\u201d Senator Toomey stressed: \u201cWith FTX, the problem is not the instruments that were used. The problem was the misuse of customer funds, gross mismanagement, and likely illegal behavior.\u201d<\/p>\n<p>The lawmaker continued:<\/p>\n<p>Some of my colleagues have suggested pausing cryptocurrencies before we can address it. This is profoundly misguided, not to mention impossible. Short of enacting draconian, authoritarian policies, cryptocurrency cannot be stopped. If we tried, the technology would simply migrate offshore.<\/p>\n<p>\u201cAre we going to decide to pause our Constitution to stop crypto? This is exactly the kind of mindset that has driven this activity to the dark and less regulated parts of the world,\u201d he further opined.<\/p>\n<h2>Should Congress Refrain From Regulating Crypto?<\/h2>\n<p>Moreover, the lawmaker said: \u201cOthers have suggested we refrain from addressing cryptocurrency at all, so as to not legitimize its use. This is not only misguided, it\u2019s irresponsible.\u201d<\/p>\n<p>The senator detailed: \u201cIndividuals can also be tremendously empowered when they use cryptocurrencies. They can protect against inflation when governments irresponsibly manage their own currencies. They can provide useful services without the need for a company or middleman. And they can let individuals preserve the freedom to transact privately.\u201d<\/p>\n<p>Toomey also tweeted Wednesday:<\/p>\n<p>The collapse of FTX is not an indictment of crypto. It\u2019s an indictment of those who misused customer assets.<\/p>\n<p>\u201cAs I\u2019ve said for months, Congress needs to give regulatory clarity so business flows to prudent, sensible, well-regulated American crypto exchanges,\u201d he added.<\/p>\n<p><em><strong>What do you think about the comments by Senator Pat Toomey about FTX and cryptocurrency? Let us know in the comments section below.<\/strong><\/em><\/p>\n<p>Kevin Helms <\/p>\n<p class=\"article__body__author__info__about\">\nA student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.<\/p>\n<p><i class=\"td-icon-font td-icon-mail-1\"\/><\/p>\n<p class=\"images_credits\"><em>Image Credits: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n<p><strong>Disclaimer<\/strong>: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.<\/p>\n<p>More Popular NewsIn Case You Missed It<\/p>\n<p><script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"bitcoin\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script><br \/>\n<br \/><a href=\"https:\/\/news.bitcoin.com\/us-senator-cryptocurrency-cannot-be-stopped-ftx-collapse-isnt-an-indictment-of-crypto\/\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>U.S. Senator Pat Toomey says illegal actions by crypto exchange FTX must be separated \u201cfrom perfectly lawful and innovative cryptocurrencies.\u201d Emphasizing that \u201cThe collapse of FTX is not an indictment of crypto,\u201d he noted that \u201ccryptocurrency cannot be stopped\u201d and \u201cthe technology would simply migrate offshore\u201d if Congress tried. Separating Illegal Actions From \u2018Perfectly Lawful [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":9241,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_wp_rev_ctl_limit":""},"categories":[1],"tags":[],"class_list":["post-9240","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto-updates"],"_links":{"self":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/9240","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=9240"}],"version-history":[{"count":1,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/9240\/revisions"}],"predecessor-version":[{"id":9242,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/9240\/revisions\/9242"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/media\/9241"}],"wp:attachment":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=9240"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=9240"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=9240"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}