Brad Sherman Brags That US Gov Can Print Millions Out Of Thin Air, Then Calls Out Grayscale For GBTC
In his latest bold move, the congressman decided to stand up for GBTC investors who are currently trapped in Grayscale Bitcoin Trust.
- Congressman Brad Sherman (representing D-CA 32nd District), who is also a senior member of the Foreign Affairs Committee, and an accountant by trade, has been making headlines again by making interesting statements about Bitcoin and cryptocurrencies.
- On May 4, the congressman reacted to the announcement of US Presidential Candidate Robert F. Kennedy Jr. as one of the Bitcoin 2023 conference speakers by calling the event "a conference for tax evaders."
- On May 10th's House Hearing on The Future of Digital Assets, the congressman also delivered a delightful point:
"Crypto bros make money literally by making money and they made over a trillion dollars...out of thin air! They'll accuse the U.S. government of making money out of thin air. Maybe we do, but we're the U.S. government."
- Last but not least, yesterday Representative Sherman also wrote a letter to the SEC Chair Gary Gensler, expressing concern for 850,000 of now trapped GBTC investors.
- In essence, Sherman is now worried that the actions of GBTC and its parent company, Digital Currency Group, could make as many as 850,000 retail investors lose their retirement security and savings.
"I am concerned that Grayscale's actions with respect to GBTC are motivated by a desire to increase assets under management, regardless of its impact on GBTC's retail investors. Grayscale charges users an annual 2% fee that is based on the actual value of bitcoin and not the value of GBTC that investors own. By charging more than four times what their competitors charge, Grayscale was able to bring in $615 million in fees alone in 2021. The allowance of redemptions would subsequently decrease Grayscale's management fees and assets under management," the congressman wrote.
- While the congressman's latest effort may be laudable, Representative Sherman so far has been one of the staunchest skeptics of Bitcoin, and is believed to be well-funded by the finance lobby. These are the top contributors categorized by industry that sponsored his campaign, per OpenSecrets.org. A more concrete list top 100 contributors to Brad Sherman's Campaign Committee donors can be found here.