Recently, Congressman Brad Sherman (D-CA), head of the subcommittee on Investor Protection and Capital Markets, released a statement regarding the implosion of the cryptocurrency exchange FTX.
FTX’s instant downfall has been a dramatic demonstration of both the inherent hazards of digital assets and the vital weaknesses in the industry that has grown up around them, the lawmaker clarified.
The Congressman remarked that we do not yet know the extent of financial harm induced to consumers and investors in the U.S. and around the world, Sherman also stressed that it is crucial that we develop a precise understanding of the chain of events and management failures that led to this failure.
Further Brad Sherman says he fully supports the actions of U.S. regulators and law enforcement to analyze this situation and make sure those liable are held accountable.
The congressman illustrated that for years, he has advocated for Congress and federal regulators to take a bold approach in confronting the many threats to society posed by cryptocurrencies.
He stated that when back in July, Gurbir Grewal, director of the Securities and Exchange Commission (SEC) Division of Enforcement, testified before his subcommittee, he called on him to pursue enforcement actions against the biggest cryptocurrency exchanges for failing to enlist with the SEC after listing tokens on their platforms that the Commission had publicly identified as unregistered securities. The lawmaker quoted XRP in particular.
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The congressman believes it is important now more than ever that the SEC take decisive action to put an end to the regulatory gray area in which the crypto industry has worked and also mentioned that in the coming weeks, he plans to work with his colleagues in Congress to examine prospects for federal legislation.
Congressman Sherman California is not the only politician compelling strict regulation after the implosion of Sam Bankman’s exchange. The White House and several U.S. senators have called for proper crypto management. Senator Elizabeth Warren (D-MA) also said that it needs more aggressive enforcement.
While the politicians continue to push SEC for more strict regulations, there are speculations that the exchange is actually politically connected with SEC chairman Gary Gensler being questioned in regards to helping Sam Bankman to find legal loopholes.
NFTHI does not recommend any kind of Investment in NFTs or NFT trading. All the strategies are merely educational references.
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