The cryptocurrency market is coming under some heavy fire in Congress on Tuesday in the wake of the arrest of Sam Bankman-Fried, with one House Democrat charging that the FTX creator isn’t simply a one-off.
” My worry is that we’ll see Sam Bankman-Fried as simply one huge snake in a crypto Garden of Eden. The reality is, crypto is a garden of snakes,” stated Rep. Brad Sherman, a California Democrat, at a hearing of the House Financial Solutions Committee.
Check Out: Sam Bankman-Fried’s empire of deceptiveness laid bare in U.S. federal government charges declaring huge FTX scams
FTX’s failure has actually prodded legislators to think about a host of propositions for managing the market, even as Securities and Exchange Commission Chairman Gary Gensler states his firm has the tools it requires. Sherman was crucial of handing oversight of the market to the Product Futures Trading Commission, as some legislators wish to do.
Rep. Patrick McHenry, the North Carolina Republican politician who will lead the Financial Solutions Committee in the next Congress, guaranteed Tuesday to call Gensler for statement “early and typically” next year, even as he stated he thinks in the guarantee of digital properties.
FTX’s existing CEO, John J. Ray III, stated policies aren’t his location of knowledge, however spoke normally when questioned about next actions for the market.
Likewise see: These are the 5 most damning things FTX’s brand-new CEO needs to state about Sam Bankman-Fried
” You require records, you require controls and you require to segregate individuals’s cash,” he stated.
On the other hand, Bankman-Fried’s lawyer, Mark Cohen, stated in a declaration that his customer “is evaluating the charges with his legal group and thinking about all of his legal choices.”.
