Lisa Braganca, an ex-official of the Securities and Exchange Commission (SEC), claims that lawmakers are in a difficult position regarding the case of the FTX crash, because most lawmakers had close ties with the former CEO, Sam Bankman Fried.
Will Congress Go On With Regulations?
The meltdown of FTX, as reported, will lead to thorough investigations and strict regulations on the crypto community. However, Braganca is skeptical that the lawmakers will support this venture, given that the majority of them had close ties with the FTX CEO.
Braganca said she is uncertain whether lawmakers will take action or will leave the situation in the hands of the SEC.
The SEC had previously requested that Congress draft and establish strict regulations on cryptocurrency for the regulatory bodies to follow.
The Crypto exchange, FTX, manned and established by Sam Bankman Fried, has placed Congress in a difficult spot over the issue of regulation, as he had developed close ties with lawmakers in the days preceding the crash.
The irony of how this event unfolded is surprising; when the FTX crash was recorded, rumours began to circulate about how crypto freedom would eventually come to an end and that strict regulation would be imposed on crypto as a result of this incident. However, the question now is whether the lawmakers will go ahead with this plan because of their close relationship with the CEO of FTX.
Also read:Investigations Still Ongoing On The FTX Crash
Braganca, on the other hand, added that lawmakers are not adequately equipped to deal with the crisis on their own and would require assistance from experts and notable organizations.
The FTX exchange recently filed for bankruptcy after being liquidated last week; these events were initiated by a report outlining the holdings of Alameda Research.
According to this report published by Coindesk, Alameda Research had the majority of its assets in the Exchange’s native token, FTT. Alameda Research is currently under investigation for its trading activities, as well as the misuse and misallocation of investor funds.
SBF, on the other hand, fueled this fire by taking to Twitter to tell his side of the story despite ongoing investigations. This has been reported to put additional pressure on his legal team, putting them in a difficult position; stating that this is not what any legal team would require from its client at this time.
At Tokenhell, we help over 5,000 crypto companies amplify their content reach—and you can join them! For inquiries, reach out to us at info@tokenhell.com. Please remember, cryptocurrencies are highly volatile assets. Always conduct thorough research before making any investment decisions. Some content on this website, including posts under Crypto Cable, Sponsored Articles, and Press Releases, is provided by guest contributors or paid sponsors. The views expressed in these posts do not necessarily represent the opinions of Tokenhell. We are not responsible for the accuracy, quality, or reliability of any third-party content, advertisements, products, or banners featured on this site. For more details, please review our full terms and conditions / disclaimer.