While US Representative Brad Sherman considered Sam Bankman-Fried as the star child of the crypto ecosystem, Congressman Tom Emmer highlighted the crypto community’s commitment to exposing the FTX fraud.
The arrest of the former CEO of FTX Sam Bankman-Fried by the Bahamian authorities has become a signal for anti-crypto activists to start a discussion about the dangers of cryptocurrencies. While some political leaders blame the crypto ecosystem for the SBF’s alleged fraud, others see no point in blaming the entire industry for the actions of one man.
During the Financial Services Committee hearing on FTX, Congressman Brad Sherman saw no difference between SBF and a company that boasts a market value of $2 trillion, saying: “I am afraid that we see Sam Bankman-Fried as one big snake in the garden of Eden of crypto. The truth is that crypto is a garden of snakes.
He said that cryptocurrencies and non-fungible tokens (NFTs) are bought in the hope of selling them at a higher price. He also explained how entrepreneurs like “Sam Bankman-Fried will tell you that there is a hell of a market for money laundering” and stated that crypto helps actors to evade taxes.
On the other hand, Congressman Tom Emmer excluded the FTX fallout from the industry of cryptocurrencies during his speech in the hearing. Instead, Emmer argued that the immutable nature of blockchain technology has helped the crypto community identify differences in FXT tokens.
FTT ($1.38), which ultimately led to SBF arrest.
Information stored on public blockchains will help law enforcement investigate the nuances of possible crimes, according to Emmer, who added: “I urge my colleagues to recognize the Sam Bankman-Fried scandal for what it is – a failure of the organization, a failure of business ethics and criminality. It’s not a failure of technology.
As naysayers attempt to link SBF practices with the concepts of crypto and blockchain, the case for regulation is getting stronger. A public crypto ecosystem based on blockchain not only enables traceability but can also help authorities in their money laundering schemes. Despite decades of federal government resistance to crypto, there is still support for crypto in the US Senate.
Pro-crypto Senator Cynthia Lummis believes in Bitcoin BTC ($17,896) conditions such as contributions to 401(k) retirement plans, revealing his disdain for long-term, but temporary, bear markets: “I feel good about making sure people can put Bitcoin in their retirement savings because it’s different from other cryptocurrencies.”
Lummis places his bet on the scarcity of Bitcoin, which as a “self-certification” will help increase the value of the property over time.
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