The congressman said that cryptocurrency is not real money, and that firms spending millions of dollars on advertising proved that.
For their out-of-the-box strategy, crypto companies like Coinbase, FTX, and others dominated social media and news headlines during the Super Bowl commercials. Sherrod Brown, the chairman of the United States Senate Banking Committee, was not impressed and chastised the ad designers for failing to provide adequate cautions and hazards.
Brown brought up the matter of popular crypto advertising that aired during the Super Bowl during the Senate hearing on stablecoins on Tuesday. He claimed that the majority of these advertisements failed to inform people about the risks of investing in cryptocurrency. The corporations failed to explain the market’s dramatic price volatility and frequent scams, as well as the fact that the crypto market is less regulated than regular markets.
Super Bowl commercial slots are in high demand, with firms like Coinbase and FTX paying roughly $20 million for a 30-second spot.
Brown slammed the crypto corporations, alleging they are only interested in making a lot of money and reaching out to as many Americans as possible. He also questioned why, if cryptocurrency equals money, as many of these corporations claim, they need to spend millions to market it. He stated, ”
“The fact that these companies felt the need to promote at all is a bit of a giveaway regarding one of their primary promises – if this were genuinely supposed to be used as currency, why would you need to buy ads? I’ve never seen the Federal Reserve pay US dollars for a multimillion-dollar commercial.”
On Twitter, the crypto community was not thrilled with the Senate Banking Committee’s position on crypto ads, as one user put it:
“As if ‘fiat’ currencies had never had problems with transparency, illicit use, being untraceable, being utilised in criminal ways all over the world, and so on.” Fear-uncertainty-doubt ruled the day for some.”
Another person suggested a more in-depth look at cryptocurrencies:
“It appears that Senator Sherrod Brown is in need of a crypto education.” “It’s time for another house call, Brian Brooks.”
Brown also spoke out against stablecoins at the Senate hearing on Tuesday, stating that they harm the economy and Americans’ hard-earned money. Representative Josh Gottheimer, on the other hand, offered new legislation for government-backed stablecoins that are equivalent to fiat deposits.
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.