Three US lawmakers' reactions amidst FTX collapse

[Accardo]

Earlier during the trend of cryptocurrency regulations some U.S Senators and Congressmen like Patrick Toomey didn't want crypto to be regulated, but they all want it now! These Senators are shooting from the hip, as they is nothing to think about. FTX did something bad. Below are some of their quick reactions;

Senator Cynthia Lumiss: A strong proposer of the cryptocurrency regulation is still standing on her initial suggestion of regulating cryptocurrency. She went on to tweet that the FTX bankcruptcy wouldn't have happened if the Lummis-Gillibrand bill was passed. Here are the key points in the bill she mentioned.

• Clear property right (not your keys, not your coin)
• Strong protection and separation of customer assets on an exchange
• Tight limits on digital asset leverage and lending
• Bankruptcy protection for all customers
• Transparency into affiliates and connected organization of an exchange.

On her Interview with a Yahoo reporter named Jenniffer she called FTX a Ponzi scheme and reassured the reporter that her bill with Grillibrand will be reviewed immediately. “We’ll definitely review the bill under this to see that we have adequately protected consumers assets during a bankruptcy, protecting consumer assets from being co-mingled and making sure that our definitions are sufficiently tight,” said Lummis.

On another interview with SquawkCNBC she was asked an important question that goes; how will you regulate a company based in Bahamas and other Offshore exchanges? "We need to make sure we're balancing innovation with consumer protections," says @SenLummis
 "Buyer beware, these foreign based companies are operating under different country's laws because they're more advantageous to those companies."

My view, I think the regulation is only for US based cryptocurrency firms and that doesn't make enough sense, though Bahamas is working on her laws to tackle the FTX collapse. Therefore, it'll be difficult to regulate these exchanges, because it won't get to or affect every country. 

Second on my list is Senator Patrick Toomey

Senator Patrick is blaming the congress for not having passed a regulatory bill on cryptocurrency trading. And such negligence has led cryptocurrency developments to foreign jurisdictions that have little or insufficient regulations. Also, he said that the regulation should start with Stablecoins.





Generally, It seems they are more focused on regulating exchanges than cryptocurrency.

The last lawmaker on my list is Rep Warren Davidson who claims to have been in the digital currency space since 2000s
His Opinion, self custody, seems to be the best, and he seeks that his bill "Keep your coin" be passed, and anyone that attacks self custody opposes individual freedom. He added that people are lured to hand-over their funds to someone else(exchanges), believing that their funds are safer on exchanges.

Adding to his reactions, he quoted a tweet from 2019 where he interviewed SecEnfDirector on "Selective Enforcement", and said that the SEC has proven not to be capable of regulating cryptocurrency.


In a nutshell, from what Rep Warren Davidson had to say about the Self custody and people getting deceived to save funds on exchanges, more works needs to be done. Because, these victims enter the market blindly and they can't see what's going on, even. Regulating Exchanges seem to be more achievable in the US than any other country. What do you think?


SOURCE:

https://twitter.com/SenLummis
https://twitter.com/SenToomey
https://twitter.com/WarrenDavidson

N/B: Pictures are their respective profile pictures.

[NotATether]

The only way any new legislation will actually be enacted is if a majority of congresspeople support such a thing. But right now it seems that most of them do not care so much about cryptocurrency and are too busy with other stuff.

I disagree that stablecoins should be regulated first, considering it was a token that took down the entire exchange. So they should start with that if they want to take an immediate action to prevent a market tank again.

[o48o]

I am not sure that if asking US law makers about this is relevant when US customers didn't even get to use it. FATF regulations interest me more and if they are planning to take steps towards tougher regulations. Their tentacles are reaching all over the world

[Pmalek]

It's funny how they are trying to make it seem like their primary interest is the safety of US investors when in fact the goal is to tighten the grip and to have greater control of the crypto economy. More regulation means more taxing and new ways to identify crypto users. They don't see the fall of FTX as a sad event that caused harm and financial loss to US citizens, they are angry that because of the bankruptcy there will be a shortage of tax money coming from crypto.  

[hugeblack]

Does this mean a step forward in the direction of ETFs acceptance that the two issues are completely separate?
I have not heard many stories about the bankruptcy of people associated with FTX, I have heard more stories with Luna.

It is laughable that one of the places that clients' money was wasted was in the US elections.

[Accardo]

It's funny how they are trying to make it seem like their primary interest is the safety of US investors when in fact the goal is to tighten the grip and to have greater control of the crypto economy. More regulation means more taxing and new ways to identify crypto users. They don't see the fall of FTX as a sad event that caused harm and financial loss to US citizens, they are angry that because of the bankruptcy there will be a shortage of tax money coming from crypto.  

The US Government is mostly triggered by that which profits them, it'll take nothing to regulate these exchanges, but the funds gotten from these exchanges used for election activities dulls the impression and at the end everyone lost the race; the bankruptcy affected the Government in different manners. Now, they've got to blame the SEC for not taking action like the SEC is uncontrollable. I don't trust these law makers, the concepts of executing or passing bills is controlled by unknown inner players within their circle. Whatever is revealed to the entire public is more or less a lie. Because they should have questioned the SEC, when congress man Davidson discovered that the SEC regularly meets up with FTX. These law makers are more interested on the funds than regulating cryptocurrency.

[hugeblack]

The good side is that punching has become for central platforms, not cryptocurrencies, and therefore there is a greater understanding of the problems, including that we may witness some regulatory laws for bitcoin/stablecoin in their own right very soon.

Personally, I don't expect much to happen, not by passing laws or others, because they want crypto currencies to die by themselves, but moves such as ETF funds may make a difference during the next year or the end of the Biden term.

[Fiatless]

It's funny how they are trying to make it seem like their primary interest is the safety of US investors when in fact the goal is to tighten the grip and to have greater control of the crypto economy. More regulation means more taxing and new ways to identify crypto users. They don't see the fall of FTX as a sad event that caused harm and financial loss to US citizens, they are angry that because of the bankruptcy there will be a shortage of tax money coming from crypto.  

The fall of FTX might be a political strategy to give the cryptocurrency industry a bad name so that the government can get the needed support to enact Draconian regulatory laws. Politicians cannot be trusted because they can go to any length to achieve their selfish goals even if it means making people lose their hard-earned money.

[Accardo]

It's funny how they are trying to make it seem like their primary interest is the safety of US investors when in fact the goal is to tighten the grip and to have greater control of the crypto economy. More regulation means more taxing and new ways to identify crypto users. They don't see the fall of FTX as a sad event that caused harm and financial loss to US citizens, they are angry that because of the bankruptcy there will be a shortage of tax money coming from crypto.  

The fall of FTX might be a political strategy to give the cryptocurrency industry a bad name so that the government can get the needed support to enact Draconian regulatory laws. Politicians cannot be trusted because they can go to any length to achieve their selfish goals even if it means making people lose their hard-earned money.

FTX dispute is just among the events that have brought bad impressions to cryptocurrency. So the Government can't capitalize on one events when they're multiple scams happening on the wild west cryptocurrency market. In addition, the Government also received donations from the exchange, so I'd say that if they effected the downfall of FTX its not for regulation, maybe it's for the aim of more money, bulk. They'll have their share of the lost money.

[bbc.reporter]

The only way any new legislation will actually be enacted is if a majority of congresspeople support such a thing. But right now it seems that most of them do not care so much about cryptocurrency and are too busy with other stuff.

I disagree that stablecoins should be regulated first, considering it was a token that took down the entire exchange. So they should start with that if they want to take an immediate action to prevent a market tank again.

Almost 1 month after your reply, it appears that the legislators in both the lower and the upper house might come to an agreement to create a bipartisan bill for regulating the cryptospace. According to this article, it will create laws and regulations to crackdown on moneylaundering, however, I speculate that similar to much of the of bills created, some statements on this bill would be vague, broad and open to interpretation.



As federal prosecutors seek to imprison former crypto darling Sam Bankman-Fried, Sen. Elizabeth Warren is attempting to push through Congress a bipartisan crackdown on money laundering in the crypto industry.

The Massachusetts Democrat is teaming up with Republican Sen. Roger Marshall of Kansas to introduce new legislation on Wednesday that would seek to close loopholes in the financial system that pose national security risks by allowing digital assets to be used for money laundering, Warren’s office told CNN.

Source https://edition.cnn.com/2022/12/14/business/elizabeth-warren-bipartisan-crypto-crackdown/index.html