Rep. Brad Sherman requests tighter regulation and criticises “billionaire crypto bros”

In the aftermath of FTX’s demise, Congressman Brad Sherman is the latest lawmaker to demand tighter regulation of the cryptocurrency industry.

“This week’s collapse of one of the world’s top cryptocurrency companies was a spectacular illustration of both the inherent risks of digital assets and the significant vulnerabilities in the industry that has built up around them,” Sherman added.

Sherman has urged Congress and federal authorities to take an “active response” to any societal dangers presented by cryptocurrencies, and he intends to investigate federal legislative alternatives in the coming weeks.

“Billionaire crypto bros’ attempts to prevent serious legislation by flooding Washington with millions of dollars in political donations and lobbying expenditures have so far been successful,” Sherman added.

He drew attention to the attention paid to now-former FTX CEO Sam Bankman-political Fried’s contributions to Democrats, as well as to Ryan Salame, co-CEO of Bahamas-based FTX Digital Markets, who contributed over $23 million to Republican politicians and campaign organisations in 2022.

Sherman said, “When examining FTX’s attempts to influence Washington, you must consider both CEOs, not simply the quirky man in shorts.”

In response to Reuters’s inquiry for his whereabouts on Saturday, Bankman-Fried said he was in the Bahamas. This came after news of the SEC and DOJ inquiries made headlines. Bankman-Fried and two former FTX colleagues are “under monitoring” by Bahamian authorities, according to one source.

Also Read: Galois Capital Kept Approximately 50% Of Its Capital In FTX

Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.

Comments are closed.