Statement from US Congressman: Are Cryptocurrency Regulations Getting Tougher?

California Congressman Brad Sherman, FTXAfter the billion dollar collapse of cryptocurrency He was the last politician to call for greater regulation of the market.

After FTX Crash, Representative Brad Sherman Calls For Increasing Cryptocurrency Regulations

“The sudden collapse of one of the world’s largest crypto firms this week was a dramatic demonstration of both the risks inherent in digital assets and the critical vulnerabilities in the industry that has grown around them,” Sherman said.

FTX, one of the world’s largest crypto exchanges, filed for bankruptcy protection on Friday.

The company also includes the U.S. Securities and Exchange Commission. (SEC) and Commodity Futures Trading Commission (CFTC) mismanagement of client funds and FTX.US and Alameda Research He faced an investigation regarding his dealings with

Sherman, chairman of the Investor Protection and Capital Markets Subcommittee, said he supports “efforts by US regulators and law enforcement to investigate this situation and hold those responsible accountable.”

Sherman has advocated for Congress and federal regulators to take an “aggressive approach” to the societal threats posed by cryptocurrencies, and plans to review federal legislative options in the coming weeks.

Former FTX CEO Sam Bankman-Fried made political donations to Democrats. Ryan Salame, co-CEO of FTX Digital Markets, also donated over $23 million to Republican candidates and campaign groups in 2022.

Amid questions about his whereabouts following the news about the SEC investigation, Bankman-Fried told Reuters on Saturday that he was in the Bahamas.

Bankman-Fried and two former FTX partners are thought to be “under surveillance” by Bahamian authorities.

*Not investment advice.