Congressman Brad Sherman Calls for Strong Crypto Legislation After FTX Case

Following FTX’s multibillion-dollar collapse, Congressman Brad Sherman, a Democrat from California, demands for further regulation of the cryptocurrency industry.

One of the biggest cryptocurrency exchanges in the world, FTX, filed for Chapter 11 bankruptcy protection on Friday. The U.S. Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) are also looking into the company’s misuse of client cash and interactions with FTX US and Alameda Research.

Chairman of the Subcommittee on Investor Protection and Capital Markets, Sherman stated that he appreciates the efforts being made by American regulators and law enforcement to look into this matter and ensure that those involved are held accountable. He stated:

“The sudden collapse this week of one of the largest cryptocurrency firms in the world has been a dramatic demonstration of both the inherent risks of digital assets and the critical weaknesses in the industry that has grown up around them.

…It is crucial that we develop a clear understanding of the chain of events and management failures that led to this collapse. I fully support the efforts of U.S. regulators and law enforcement to investigate this situation and make sure those responsible are held accountable.”

He drew attention to Ryan Salame, the co-CEO of Bahamas-based FTX Digital Markets, who has donated over $23 million to Republican candidates and campaign groups in 2022, as well as the now-former FTX CEO Sam Bankman-Fried‘s political contributions to Democrats.

“A great deal of attention has been given to former FTX CEO, Sam Bankman-Fried’s, political donations to Democrats; most of that was spent in primaries (mostly unsuccessfully), not to help Democrats beat Republicans.

However, we have also seen Ryan Salame, the co-CEO of Bahamas based FTX Digital Markets, donate over $23 million to Republican candidates and campaign groups in 2022. When you examine FTX efforts to influence Washington, you have to look at both CEOs, not just the eccentric guy wearing the shorts.”

Bankman-Fried once built his empire with both geographic and legal expansion. The former FTX CEO has contributed a lot of money to politicians. However, now his fortune has become zero.

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