At a Senate banking committee hearing on Wednesday, the issue of whether more regulation would have been effective in preventing the dramatic collapse of the cryptocurrency exchange FTX was hotly contested. However, new legislation may be coming soon. Like several other Republicans on the banking committee, Lummis believes that cryptocurrencies in general should not be targeted because of the alleged financial misdeeds of former FTX CEO Sam Bankman-Fried.
Let’s keep digital assets distinct from bad actors, she remarked. “FTX is a classic case of fraud.”
Warren’s remarks on the development
Sen. Elizabeth Warren introduced bipartisan legislation to stop the use of cryptocurrency for money laundering at the hearing. Republican Senator Roger Marshall of Kansas is a co-sponsor of the bill that would make cryptocurrency exchanges verify customers’ identities in the same way that banks and other financial organizations do.
According to Massachusetts Democrat Elizabeth Warren, crypto doesn’t get a pass to help the world’s worst criminals – no matter how many tv commercials they run or how many political donations they make. According to her, Crypto has become the tool of choice for terrorists, ransom gangs, drug dealers, and for rogue nations that want to launder money.
The Responsible Financial Innovation Act, authored by Democratic Sen. Kirsten Gillibrand of New York and Republican Sen. Cynthia Lummis of Wyoming, will be reintroduced in 2019. The legislation would oblige cryptocurrency issuers to make disclosures and safeguard consumers.
However, the hearing’s four witnesses—two supporters and two opponents of cryptocurrency—were questioned by Democratic Sen. Sherrod Brown, chairman of the Senate Committee on Banking, Housing, and Urban Affairs, on whether fraud was widespread at other businesses in the sector. One of the few areas of agreement during the whole hearing, they all agreed that it was as they all stated.
O’Leary still backs Sam Bankman
Professor of law Hilary J. Allen of the American University Washington College of Law said in court that the current atmosphere in which cryptocurrencies function is very favourable to fraud.
Sam Bankman-Fried, who is expected to serve jail time, may have committed classic embezzlement, but since it used crypto, which is cloaked in mystery, intricacy, and opacity, it was able to occur on such a large scale and go unnoticed for so long.
Entrepreneur Kevin O’Leary disagreed with the description, even though the $15 million he received as a paid spokesperson for FTX is now basically worthless. O’Leary is well known for his role as Mr Wonderful on the television program “Shark Tank.”