According To Report, US Lawmakers Under Pressure After FTX Collapse
United States politicians are reassessing the legislative requirements for the crypto business for 2023 in reaction to FTX’s decline.
In light of the demise of FTX, legislators in the US are reassessing the crypto business and its regulatory requirements. The Wall Street Journal claims that after the cryptocurrency exchange declared bankruptcy in November, politicians have been under pressure to establish new regulations for cryptocurrencies.
Legislators are urging the Securities and Exchange Commission (SEC) to take a tough stance toward the cryptocurrency industry. Many measures are in the works that would apply current banking, securities, and tax standards to cryptocurrencies.
The bipartisan Congressional Blockchain Caucus, which Rep. Jake Auchincloss is a part of, reportedly noted in a hearing in the House in December that it’s time for blockchain investors and entrepreneurs to create projects that matter, or else their credibility will decrease, the author warned, adding that in 14 years, the industry has only produced “white papers and podcasts.”
Senator Roger Marshall is a proponent of stricter regulation in the US and believes blockchain technology can reduce fraud. He said, “Someone needs to convince me that it’s not all just a Ponzi game.”
Rep. Patrick McHenry, one of the few lawmakers ready to defend the cryptocurrency sector, said it is essential to distinguish between an individual’s terrible acts and the positive effects of a business or innovation. McHenry will serve as chair of the House Financial Services Committee in the next Congress.
Sam Bankman-Fried, a former CEO of FTX, lobbied for legislation in Washington that would empower the Commodity Futures Trading Commission (CFTC) to oversee cryptocurrencies. The law was anticipated to be part of the budget expenditure package for 2023, but given the recent developments, it is now unlikely to move forward.
Bankman-Fried gave much money to the Democrats and Republicans in Washington. He proposed investing up to $1 billion earlier this year to influence the 2024 presidential election campaigns.
With a cumulative donation of $39.8 million to politicians and political parties, SBF is the sixth-largest political contributor according to Open Secrets, a website that records political spending.
