No one should be pushing FTX-approved legislation putting the underfunded CFTC in charge of the crypto industry until they know the facts

CFTC’s “ready, shoot, aim” legislation approach should be rejected

WASHINGTON DC – Dennis M. Kelleher, Co-Founder, President and Chief Executive Officer, issued the following statement in response to the Senate Agriculture Committee’s announcement of a hearing titled “Why Congress Must Act: Lessons Learned From the collapse of the FTX” on December 1, 2022:

“Before its collapse last week, FTX and its CEO Sam Bankman-Fried spent huge sums of money buying access and influence to get Congress to quickly pass its special interests legislation putting the regulator the smallest and least funded financial institution, the CFTC, in charge of the complex and sprawling crypto industry. FTX and its allies have done so even as certain bills have negated the SEC’s ability to properly police capital markets, jeopardizing the deepest and most liquid capital markets in the world.

“The CFTC Chairman has de facto approved these two FTX-approved bills and, alongside Sam Bankman-Fried himself, appears to have pushed hard for them to pass, including last week when he said the legislation should pass “no questions asked. This ready-made legislative approach must be rejected. In light of the collapse of FTX and the apparent loss of billions of dollars to investors and customers, believed to be due in part to potentially illegal and even criminal behavior, many questions need to be asked and answered before there is legislation, in particular legislation. endorsed and driven by FTX.

“There should be no rush to render legislative judgment until the facts related to FTX are known, including the conduct of the CFTC regarding FTX and Sam Bankman-Fried, as reported here, here, and here. As recent statements by the bankruptcy trustee point out, it would be impossible in the short term to know what happened at FTX. Therefore, it will be impossible to know how any legislation could or could not have prevented what happened at FTX. Any push to pass FTX-approved bills would be a blind rush to judgment that would likely put investors, customers, and financial stability at risk.

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Better Markets is a nonprofit, nonpartisan, independent organization founded in the wake of the 2008 financial crisis to promote the public interest in financial markets, support financial reform on Wall Street, and make our financial system work for all Americans. Again. Better Markets works with allies, including many finance stakeholders, to promote pro-market, pro-business, and pro-growth policies that help build a stronger, safer financial system that protects and promotes jobs, jobs, and growth. savings, Americans’ retirements and more. To learn more, visit www.bettermarkets.org

About Michael S. Montanez

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