Former US Congressman Brad Sherm said in an interview that US regulators have made it clear to banks that investing in cryptocurrencies is risky and toxic.
- Sherm, known for his skeptical views on cryptocurrencies, expressed concerns about the growing popularity of cryptocurrencies and their impact on the financial system.
“US regulators such as the Securities and Exchange Commission (SEC) and the Federal Reserve (Fed) understand that cryptocurrencies are a risky asset and can be used for illegal activities such as money laundering and terrorist financing,” Sherm said.
He also noted that banks should be cautious when investing in cryptocurrencies because they are responsible to their customers and regulators.
“If a bank invests in cryptocurrencies and loses money, it will be liable to its customers and regulators. Therefore, banks must weigh the risks and take measures to protect their customers and their business operations,” Sherm said.
Sherm also expressed his hope that US regulators will continue to monitor cryptocurrencies and take measures to protect investors and the financial system.
“Cryptocurrencies can be exciting for those looking for quick and high-yield investments, but they can also be dangerous and toxic. Regulators should continue to monitor the cryptocurrency market and take measures to protect investors and financial stability,” Sherm concluded.
Thus, Sherm’s remarks reflect the general opinion on cryptocurrencies among regulators and financial market experts. Despite the fact that cryptocurrencies are an innovative and promising type of asset, they still raise concerns among regulators and financial market experts, especially in light of their high volatility and possible risks to investors and financial stability. Therefore, it is important that banks and other market participants carefully assess the risks and comply with the relevant rules and regulations set by regulators.