Senate Banking Committee Debates Merits Of Cryptocurrency

The U.S. Senate Committee on Banking, Housing, and Urban Affairs debated the benefits and drawbacks of cryptocurrencies.

In a hearing titled "Cryptocurrencies: What are they good for?," Committee Chair Sherrod Brown (D-OH) argued that cryptocurrencies: (i) are "not backed by the full faith and credit of the United States"; (ii) put at risk "Americans' hard-earned money"; (iii) create a shadow financial system that lacks oversight, regulation and limits; (iv) are not transparent or democratic as claimed by proponents but rather a "shady" and "diffuse network"; and (v) will enable traditional financial institutions to avoid accountability and put the "entire economy at risk."

Committee Ranking Member Pat Toomey (R-PA) countered, arguing that cryptocurrencies are useful as an exchange medium and a secure store of value. Mr. Toomey noted the significance and innovation underlying distributed ledger technology, though he acknowledged the valid concerns surrounding