The U.S. House of Representatives is focusing on the impact of cryptocurrencies as long-term investments and launching a thorough investigation. Members of Congress call for a ban on cryptocurrencies

The topic of cryptocurrency came up again today during a hearing of a subcommittee of the House Financial Services Committee titled, “Will Crypto Mania Lead to Financial Independence, Early Retirement, or Financial Bankruptcy?”

Maxine Waters, chairwoman of the U.S. House Financial Services Committee, said at a hearing that the committee is paying attention to the impact of cryptocurrencies as long-term investments and is conducting in-depth research on how to better regulate this fast-growing industry. The committee has begun a thorough investigation of the market.

Waters said Congress and regulators face many challenges as we grapple with how best to regulate cryptocurrencies, including issuers, exchanges, and investments.

“The Commission is committed not only to providing greater transparency in this minimally regulated industry, but also to ensuring that appropriate safeguards are in place, and as such we have begun a thorough investigation of this market,” she said.

Congressman Brad Sherman suggested banning cryptocurrencies, saying: "Cryptocurrencies are very volatile. So if one person makes $1 million and retires at age 49, and nine people lose $100,000. The millionaire goes on TV and talks about how wonderful it is, and the other nine don't retire decently and have to collect Medicaid...Cryptocurrencies have the political support of patriotic anarchists who encourage tax evasion, so I hope we ban them."

He believes that cryptocurrencies are highly volatile. Although they can make a few people rich, they can also cause the majority of people to suffer huge losses. Sherman said that investing in cryptocurrencies is worse than investing in lottery tickets.

However, there are also cryptocurrency supporters among them. Congressman Tom Emmer defended the potential of Bitcoin and blockchain technology to create more trust and transparency in traditional systems.

At the hearing, Sarah Hammer of the Wharton School of the University of Pennsylvania said: "Bitcoin, as an intangible digital commodity, is a novel application of these laws that have been around for a hundred years."

Rep. Anthony Gonzalez, D-Calif., encouraged people to listen to all members of the committee, not just the hostile ones, calling the idea that investing in cryptocurrencies is worse than investing in the lottery as ridiculous.

Peter Van Valkenburgh believes that the crypto industry has enough regulation. His argument is mainly two-fold: Over the past 10 years, several federal and local governments have issued their own legislation for this new asset class. He added that the technology in blockchain is a form of regulation.

"I do have some panic, and my panic stems from 2008," subcommittee chairman Al Green said in his closing remarks at the hearing. He spoke passionately about the $700 billion bailout package he voted against in 2008. "I learned an important lesson. Do what you believe is in the best interest of your constituents, even if they disagree."

“I hope regulators will see this as an opportunity to prevent a disaster,” Green said after the hearing, making clear he hopes existing regulators will rise to the challenge.