US lawmakers under pressure following FTX collapse: Report

U.S. legislators appear to be reassessing the cryptocurrency industry and its regulatory needs in light of the demise of FTX.Lawmakers under pressure since crypto exchange filed for bankruptcy in November, according to The Wall Street Journal to set A new regulatory framework for cryptocurrencies.

With several proposals underway to apply existing banking, securities and tax laws to cryptocurrencies, lawmakers are calling on the Securities and Exchange Commission (SEC) to adopt a proactive approach to the cryptocurrency market.

During a December House hearing, Rep. Jake Oakincross, who is also a member of the bipartisan Congressional Blockchain Caucus, said, “There is a time when blockchain investors and entrepreneurs build things that matter or lose more credibility. He is reported to have said, For 14 years, crypto has only delivered “white papers and podcasts”.

Senator Roger Marshall, who has argued that blockchain technology could thwart fraud, is also calling for more regulation in the United States. “Somebody needs to convince me it’s not just a Ponzi game,” he insisted.

RELATED: Companies and investors may have to return billions of dollars paid out by FTX

Among the few lawmakers to stand up for the crypto industry, Rep. Patrick McHenry said we need to “separate the bad behavior of individuals from the good that the industry and innovation have created.” rice field. The House Financial Services Committee will be led by McHenry in the new Congress.

Former FTX CEO Sam Bankman-Fried’s lobbying in Washington focused on a bill that would give the Commodity Futures Trading Commission (CFTC) the power to regulate cryptocurrencies. The bill was he expected to be included in the 2023 budget spending package, but progress over the past few weeks makes it unlikely to move forward now.

As Cointelegraph reported, Bankman-Fried was a significant donor to Republicans and Democrats in Washington. Earlier this year, he considered spending up to $1 billion to influence his 2024 presidential campaign.

Open Secrets, a platform that tracks money in politics, list SBF is the sixth largest political donor in the 2021-2022 cycle, with $39.8 million in combined contributions to candidates and political parties.