Will lawmakers be able to withstand the pressure exerted on them in FTX case
2023.01.01 05:02
Will lawmakers be able to withstand the pressure exerted on them in FTX case
Budrigannews.com – In light of the collapse of FTX, it would appear that legislators in the United States are reevaluating the requirements for regulation in the crypto industry. The Wall Street Journal reports that lawmakers have been under pressure to establish a new regulatory framework for cryptocurrencies ever since the cryptocurrency exchange declared bankruptcy in November.
Legislators are urging the Securities and Exchange Commission (SEC) to take a more aggressive approach to the cryptocurrency market, and there are a number of proposals in the works that would apply the rules for banking, securities, and taxation that are already in place to cryptocurrencies.
According to reports, Rep. Jake Auchincloss, who is also a member of the bipartisan Congressional Blockchain Caucus, said in a December House hearing, “it’s time for the blockchain investors and entrepreneurs to build things that matter or to lose more credibility.” He also said that crypto has only delivered “white papers and podcasts” in the past 14 years.
Additionally, Senator Roger Marshall is advocating for tighter regulation in the United States. He believes that blockchain technology has the potential to stop fraud. He asserted that “someone needs to convince me that it’s not all just a Ponzi game.”
Rep. Patrick McHenry, one of the few lawmakers willing to support the cryptocurrency industry, stated that “to separate out the bad actions of an individual from the good created by an industry and an innovation” is necessary. In the upcoming Congress, McHenry will be in charge of the House Financial Services Committee.
FTX previous Chief Sam Bankman-Seared’s hall in Washington was centered around a bill that would give the Ware Prospects Exchanging Commission (CFTC) power to manage digital currencies. It was anticipated that the bill would be included in the spending package for the budget for 2023; however, given the events of the past few weeks, it is now unlikely that it will proceed.
Cointelegraph said that Bankman-Fried gave a lot of money to Republicans and Democrats in Washington. He thought about spending up to a billion dollars earlier this year to help influence the campaigns for president in 2024.
SBF is listed as the sixth-largest political contributor for the 2021-2022 cycle, according to Open Secrets, a platform that tracks money in politics. It made a total contribution of $39.8 million to candidates and political parties.
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