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Crypto-oriented non-profit Coin Center tweeted the remarks of the congressman, a Democratic representative for California's 30th congressional district, on May 9.
In her commentary, Rep. Sherman said lawmakers must act preventively to prevent the threat posed by cryptocurrencies and therefore ban their purchase by US citizens. Crypto's threat, he said, bodes no less than a shock to America's geopolitical influence because of its potential weakening of the power of its sovereign currency:
“An awful lot of our international power stems from the fact that the dollar is the standard unit of international finance and transactions [...] it is the announced purpose of the supporters of cryptocurrencies to take that power away from us.”
To illustrate the current hegemony of the dollar, Sherman noted that in many key global markets like oil, clearing through the New York Federal Reserve remains essential for major transactions.
The congressman continued to outline the purportedly negative impact of cryptocurrencies should they gain traction as a global unit of value, stating that an extra-national, distributed digital currency would:
“Put us in the position where the significant sanctions we have on Iran, for example, would become irrelevant.”
Sherman concluded by asserting that the ultimate outcome of cryptocurrencies would not only weaken US foreign policy.
As reported, Sherman has previously called for a prohibition on U.S. citizens buying or mining cryptocurrencies. He has also remarked of the supporters of initial coin offerings that “charlatans and scammers have always favored decentralized new enterprises.”
In March 2018, he claimed that cryptocurrencies are a crock whose value lies in aiding terrorists and criminals.
Many of Sherman’s fellow lawmakers, however, take a distinctly more positive view of the promise of cryptocurrencies, with Congressman Darren Soto working on the advancement of three interrelated bills involving the promotion of blockchain.
