Charlie Munger calls for federal ban on crypto

The old guard banker and investor has repeatedly called for tougher measures on crypto, describing the industry as a “gambling contract”.

Berkshire Hathaway vice chairman Charlie Munger has urged the US government and regulators to pass a new federal law cracking down on crypto, effectively calling for a ban.

Munger has always been an outspoken critic of the crypto sector. In a recent opinion piece published in the Wall Street Journal, Munger continued to pile on this criticism, arguing that there was a significant “gap” in the way the sector is regulated.

Munger stated outright that crypto assets cannot be classified as either currencies, commodities, or securities.

He directly assailed crypto, calling it a “gambling contract” where the house had 100% of the edge.

Munger is a traditional banker who has built his wealth on the stock market and has repeatedly dismissed or criticized the crypto sector, arguing that there was little it could offer finance at large.

In 2021, he said that Bitcoin’s surge was “disgusting” and insisted that investing in the currency, and other digital assets, was effectively “investing into thin air”.

Munger has long been backed by other old-timer bankers, including his close associate Warren Buffett, who is chairman at Berkshire Hathaway.

Still, Buffett’s critical tone has lessened over the years, with the so-called ‘Oracle of Omaha’ unable to dismiss crypto entirely given support for the sector from serious partners.

As to Munger, however, the man has remained adamant in his view of the crypto sector. Whether he would one day be vindicated in his criticism remains to be seen.

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Written by Alex

Reporter

Alex is a well-rounded crypto writer who focuses on general market and legal developments. His main interest lies in how crypto gaming can become a more permanent part of the gaming landscape and how blockchain holds benefits to players they are not even aware of.