US lawmakers under pressure following FTX collapse: Report

Legislators successful the United States look to beryllium reevaluating the crypto manufacture and its regulatory needs successful airy of FTX's collapse. According to the Wall Street Journal, since the crypto speech filed for bankruptcy successful November, lawmakers person been nether unit to set a caller regulatory model for cryptocurrencies. 

Several proposals are successful the works that would use existing banking, securities, and taxation rules to cryptocurrencies, and lawmakers are calling connected the Securities and Exchange Commission (SEC) to follow an assertive attack to the crypto market.

In a December House hearing, Rep. Jake Auchincloss, who is besides a subordinate of the bipartisan Congressional Blockchain Caucus, reportedly noted that "it’s clip for the blockchain investors and entrepreneurs to physique things that substance oregon to suffer much credibility,” adding that successful 14 years crypto has lone delivered "white papers and podcasts".

Senator Roger Marshall, an advocator for blockchain technology's imaginable to halt fraud, is besides pushing for tighter regularisation successful the United States. "Someone needs to person maine that it's not each conscionable a Ponzi game," helium claimed.

Related: Companies and investors whitethorn request to instrumentality billions successful funds paid by FTX

Among the fewer legislators consenting to basal up for the crypto industry, Rep. Patrick McHenry stated that it is indispensable "to abstracted retired the atrocious actions of an idiosyncratic from the bully created by an manufacture and an innovation.” The House Financial Services Committee volition beryllium led by McHenry successful the caller Congress.

FTX erstwhile CEO Sam Bankman-Fried's lobby successful Washington was focused connected a measure that would springiness the Commodity Futures Trading Commission (CFTC) authorization to modulate cryptocurrencies. The measure was expected to beryllium included successful the fund spending bundle for 2023, but present it's improbable to beforehand owed to the past weeks' developments.

As reported by Cointelegraph, Bankman-Fried was a important donor to Republicans and Democrats successful Washington. Earlier this year, helium considered spending up to 1 cardinal dollars to assistance power 2024 statesmanlike predetermination campaigns.

Open Secrets, a level that tracks wealth successful politics, lists SBF arsenic the sixth-largest governmental contributor for the 2021-2022 cycle, with a full publication of $39.8 cardinal for candidates and governmental parties.