Report: US under pressure after FTX collapse
The United States legislature is reevaluating the regulatory requirements for the crypto industry in 2023, as a response to FTX’s collapse. News Ho-hoo-ho! Get a Limited Holiday Trait According to the Wall Street Journal in November, the bankruptcy filings of the crypto exchange have put pressure on lawmakers to create a new regulatory framework. According to the Wall Street Journal, several proposals have been in the works to apply existing tax, securities and banking rules to cryptocurrencies. Additionally, Senator Roger Marshall, who advocates for blockchain technology’s ability to stop fraud, is pushing for tighter regulation in the United States. “Someone has to convince me that this is not just a Ponzi scheme,” he said. Relating to the new Congress, Rep. Patrick McHenry, a supporter of blockchain technology’s potential to stop fraud, stated that the House Financial Services Committee would be headed by McHenry. Sam Bankman-Fried, former CEO of FTX was focusing his lobby in Washington on a bill that would give authority to the Commodity Futures Trading Commission to regulate cryptocurrencies. The bill was expected that it would be included in the budget spending plan for 2023. However, due to recent developments, it is unlikely that it will advance. Cointelegraph reported that Bankman-Fried was a major donor to both Republicans and Democrats in Washington. He had previously stated that he was considering spending as much as one billion dollars to influence the 2024 presidential election campaigns. Open Secrets, an online platform that tracks money in politics lists SBF as the sixth largest political contributor for the 2021-2022 cycle with a total contribution $39.8 million for candidates or political parties.