Lawmakers in the United States appear to be reassessing the crypto industry and its regulatory requirements in light of the FTX collapse. According to the Wall Street Journal, since the crypto exchange’s bankruptcy in November, lawmakers have been under pressure to establish a new regulatory framework for cryptocurrencies.
Several proposals are in the works that would apply existing banking, securities and tax regulations to cryptocurrencies, and lawmakers are asking the Securities and Exchange Commission (SEC) to take an aggressive approach to the crypto market.
At a House hearing in December, Rep. Jake Auchincloss, who is also a member of Congress’ bipartisan blockchain caucus, reportedly noted that “it’s time for blockchain investors and entrepreneurs to build things that are being driven by… are meaningful, or lose more credibility,” he added. For 14 years, Crypto has only delivered “whitepapers and podcasts.”
Senator Roger Marshall, a proponent of blockchain technology’s potential to stop fraud, is also pushing for tighter regulation in the United States. “Someone has to convince me this isn’t all just a Ponzi game,” he claimed.
Related: Companies and investors may have to repay billions of funds paid by FTX
Among the few lawmakers willing to champion the crypto industry, Rep. Patrick McHenry stated that there was a need to “separate the bad deeds of an individual from the good that is created by an industry and an innovation.” The House Financial Services Committee will be chaired by McHenry in the new Congress.
Former FTX CEO Sam Bankman-Fried’s lobby in Washington focused on a bill that would give the Commodity Futures Trading Commission (CFTC) the power to regulate cryptocurrencies. The bill was expected to be included in the 2023 budget spending package but is now unlikely to move forward given developments over the past few weeks.
As Cointelegraph reported, Bankman-Fried has been a significant donor to both Republicans and Democrats in Washington. Earlier this year, he was considering spending up to $1 billion to influence the 2024 presidential race.
Open Secrets, a platform that tracks money in politics, lists SBF as the sixth-largest political donor for the 2021-2022 cycle, with a total contribution of $39.8 million to candidates and political parties.