The chief of US Senate Banking Committee, Sherrod Brown expressed concern about lack of information in the cryptocurrency ads broadcast during Super Bowl. He has been warning against crypto assets for some time. According to him, hard-earned money of Americans invested in crypto assets are at risk. He had sent a letter in Nov. 2021 to cryptocurrency trading platforms and stablecoin issuers like Coinbase, Gemini and Tether. The letter outlined his concerns about the vulnerabilities US investors faced by investing in these assets.
His Concerns
During the Tuesday hearing on stablecoins, he expressed concerns about increasing investments in crypto assets by American investors. His first comments were for the US central bank. He asked the Reserve Board to place the workers first and lower the prices. The bank should bring down prices if it is really concerned about the increasing inflation, he commented.
His Concerns about Cryptocurrency Ads at Super Bowl Event
He expressed concern about these ads appearing during this popular event last Sunday. Many firms like Coinbase, FTX and crypto.com advertised during the event. There were multiple ads with financial products that most people have heard but do not understand. Even many investors who have bought these crypto assets do not know how to check and confirm the underlying value of these assets. He added, the crypto companies are targeting small investors in a desperate bid to reach maximum number of people.
The chief said that these platforms in their advertisements did not mention the scams, outright theft and fraud incidents happening in this industry. There was no warning about the large price swings that crypto world experiences frequently. There is no information about the high charges of crypto firms. These crypto markets do not have any oversight or investor protection systems in place. He mentioned how hackers recently stole over $300M of investors from a crypto trading platform.
