Congressman Brad Sherman targets “Billionaire Crypto Bros” to slow regulation

US Congressman Brad Sherman has crossed out On the crypto industry in the wake FTX collapseHe points the finger at the “crypto billionaire Bros” for trying to delay “meaningful legislation” from the federal government.

Ultra-rich cryptocurrencies were well represented among political donors during the recent US midterm elections.

About $2.3 billion in total was raised during this election cycle, According to the data From the non-profit organization Open Secrets. FTX CEO Sam Bankman-Fried spent $39.8 million, most of which went to Democrats, making him the sixth largest single political donor.

The famous crypto bull and Silicon Valley character Peter Thiel died $32.6 million to support various Republican candidates.

Sherman, who is currently chair of the Investor Protection and Capital Markets Subcommittee, said the recent collapse of FTX was “exciting evidence of both the risks inherent in digital assets and the critical vulnerabilities in the industry that have arisen around it” and that he wholeheartedly supports efforts to “ensure Hold those responsible accountable.

In particular, the organizer acknowledged political donations to Democrats by FTX CEO Sam Bankman-Fried, which had already received enough media attention, and commented that these donations were made “not to help Democrats beat Republicans” and “mostly without success.”

Sherman added that donations from Ryan Salameh, co-CEO of FTX Digital Markets in the Bahamas, also deserve attention, saying: “When you examine FTX’s efforts to influence Washington, you have to look at both CEOs, not just the eccentric guy in the pants. short”.

chops Donatesd more than $23 million to Republican candidates and campaign groups in 2022, ranking him 14th on Open Secrets’ list of donors, showing that donations related to FTX were not evenly split along partisan lines.

Sherman deals with encryption

This is not the first time that Sherman has taken a hard line on cryptocurrency exchange.

In his latest memo, the congressman noted that he had approached SEC’s Director of Enforcement Gurbir Grewal to take enforcement action against cryptocurrency exchanges “for failing to register with the SEC after listing tokens on its platforms that the commission publicly identified as unregistered securities.”

Senator who once said That all Bitcoin does is allow “a few dozen men in my area to sit in their pajamas on their couch all day and tell their wives they’re going to be millionaires,” sparking public criticism of some of his boldest statements about digital assets.

Sherman said at a congressional hearing earlier this year Requested If “those colors are going to be left in the bag if we see a crash in cryptocurrencies or stablecoins?”

statement transfer anger On crypto Twitter, African-American Democratic primary challenger Erika Rhodes, who is generally a supporter of cryptocurrency, mocks him for his “condescending attitude.”

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