US lawmakers have begun revising cryptocurrency regulations following the collapse of FTX, with the latter triggering the proposed regulations, the Wall Street Journal (WSJ) reported on New Year’s Eve.
According to the report, Capitol Hill has mulled several proposals across banking, tax and securities regulations, and other measures. Legislators have also urged the Securities and Exchange Commission (SEC) to adopt stricter rules across cryptocurrency markets.
Rep Jake Auchincloss of the Congressional Blockchain Caucus, said in a hearing last month that it was “time for the blockchain investors and entrepreneurs to build things that matter or to lose more credibility.”
He slammed the cryptocurrency industry for allegedly creating “white papers and podcasts.”
Blockchain advocate Senator Roger Marshall added: “Someone needs to convince me that it’s not all just a Ponzi game.”
FTX Crisis Continues
The news comes after Sam Bankman-Fried, the disgraced chief executive for FTX, supported a bill allowing the Commodity Futures Trading Commission (CFTC) to regulate digital currencies.
Lawmakers aimed to add the bill to budgetary packages in 2023, but may face obstacles due to the ongoing collapse of Bankman-Fried’s cryptocurrency platform.
In mid-December, a White House spokesperson refused to respond to reporters when asked whether US president Joe Biden would return Bankman-Fried’s $5.2 million campaign donations.
Bahamian authorities arrested the disgraced FTX chief in December on charges of mishandling funds and committing financial fraud via his company and Alameda Research, FTX’s crypto research wing.
He also faces charges of violating campaign finance laws, breaching contribution rules, funds contribution violations, and obstructing Federal Election Commission duties, among other offences.
He also contributed $36.8 million to Democratic Party candidates for the 2022 midterms, OpenSecrets data revealed.
