Super Bowl ads from crypto companies including Coinbase, FTX, and a few others led to social media and headlines for their out-of-the-box approach. However, Sherrod Brown, chair of the US Senate Banking Committee, was unimpressed and criticized the ad producers for not including appropriate warnings and risks.
During a Senate hearing on Tuesday, Brown touched on a popular crypto advertisement that aired during the Super Bowl. He said that most of these ads did not tell people about the disadvantages of investing in cryptocurrency. The companies did not mention the huge price fluctuations and common scams that occur in the market, or that the cryptocurrency market is not as well regulated as the traditional market.
Super Bowl ad slots are very popular, and companies like Coinbase and FTX have paid nearly $20 million for a 30-second ad slot.
Related: Crypto Exchange FTX.US To Give Up Bitcoin As Part Of The Super Bowl Promo
Brown cracked down on crypto companies and said they were just trying to make a lot of money and reach as many Americans as possible. He also said that if cryptocurrency is money, as many of these companies claim, why would they need to invest millions to market it. He said:
“The fact that these companies felt the need for ads at all is kind of demonstrating one of their primary claims – if they were really meant to be used as currency, why did I need to buy ads? I’ve never seen the Fed buy ads with millions of dollars in US dollars.”
The crypto community on Twitter did not like the position of the head of the Senate banking division toward crypto ads, as one user wrote:
“As if fiat currencies have never had problems with transparency, illegal use, lack of traceability, criminal use around the world, and the like. For some, fear, uncertainty and doubt rule the day.”
Another user recommended a more detailed guide to cryptocurrencies:
“It looks like Senator Sherrod Brown needs a coding education. Brian Brooks, time for another home visit.
At Tuesday’s Senate hearing, Brown also spoke out against stablecoins, claiming that they endanger the economy and Americans’ hard-earned money. However, Representative Josh Gutimer introduced a new law for state-secured stack coins, such as paper deposits.