A few days ago, the U.S. Congressman Bradley Sherman, proposed the Congress to ban virtual currencies for U.S. citizens. The Democrat representative explained that digital currencies harm the U.S. dollar and its presence in the market. Would a ban in digital assets have a positive or negative effect in the crypto space?
How Would The Crypto Market Be Affected With a U.S. Ban?
As Bitcoin (BTC) starts growing again in the crypto market, the U.S. Congressman Bradley Sherman, is calling other representatives to introduce a bill to outlaw digital currencies.
On the matter, he said:
“I look for colleagues to join with me in introducing a bill to outlaw cryptocurrency purchases by Americans. […] An awful lot of our international power comes from the fact the U.S. dollar is the standard unit of international finance and transactions.”
He explained that virtual currencies are also being used by criminals and terrorist groups. For example, ISIS and Hamas are using Bitcoin to receive donations from supporters all over the world. At the same time, he claims that they are also used for tax evasion, drug dealing and more.
The main question is whether a U.S. ban on cryptocurrencies would be bullish for the whole cryptocurrency market. The first thing we can do is to compare the United States with China and what happened when the Asian country banned digital assets. The market fell substantially during a bull market and the number of investors fell as well. China was one of the most important markets for virtual currencies.
According to Anthony Pompliano, such a measure would be bullish for Bitcoin and digital currencies. Pompliano said that Sherman seems to be scared of a world in which non-sovereign currencies are the default. Thus, if that happens, this would show that Bitcoin works as it should. There is currently no better advertisement for Bitcoin such as this one. Banning it would show how difficult is for the U.S. to have control over it and it would just simply confirm the validity of the most popular cryptocurrency.
Although in China it has a very negative effect on the market in the short-term, it confirmed that Bitcoin and other virtual currencies can be used even during the government’s shutdowns and prohibitions.
Currently, the most popular crypto has a market capitalization of $125 million and each BTC can be purchased for over $7100 in some exchanges.