Senate crypto hearing yields big claims, possible regulation

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Whether increased regulation would have prevented the spectacular collapse of cryptocurrency exchange, FTX was fiercely debated at a hearing of the Senate’s banking committee Wednesday. However, new legislation is potentially on the way.

The legislation, co-sponsored by Republican Sen. Roger Marshall of Kansas, would require cryptocurrency exchanges to verify customer identities like banks and other financial institutions do.

However, Democratic Sen. Sherrod Brown, chairman of the Senate Committee on Banking, Housing and Urban Affairs, asked the hearing’s four witnesses – two crypto proponents and two critics – whether fraud was systemic at other firms in the industry. They all indicated that it was – one of the few points of agreement in the entire hearing.

“Sam Bankman-Fried may have engaged in good old-fashioned embezzlement,” she said, “but the embezzlement was able to reach such a scale and go undetected for so long because it was crypto – shrouded in opacity, complexity, and mystique.” O’Leary also testified that Bankman-Fried told him that the collapse of FTX was due to its battle with crypto competitor Binance, which also held a stake in FTX.“These two behemoths that owned the unregulated market together… were at war with each other,” O’Leary said. “And one put the other out of business.”

Sen. Sherrod Brown, D-Ohio, chairman of the Senate Banking Committee, and Sen. Pat Toomey, R-Pa., right, the ranking member, lead a hearing on cryptocurrency and the collapse of the FTX crypto exhange and its founder Sam Bankman-Fried, at the Capitol in Washington, Wednesday, Dec. 14, 2022.

 

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Sens. Warren and Marshall introduce new money-laundering legislation for cryptoMore regulation is on the way. US Sens. Elizabeth Warren and Roger Marshall introduced a new bill that will require crypto to “follow the same money-laundering rule as every bank, every broker and Western Union all have to follow today.” you can contact the purefi team 👉👉👉 Warren is incredible thoughtful re: protecting consumers. In a country where liberals, conservatives, and everyone in between must have a say in how we govern ourselves, I welcome her input. 😬
Source: Cointelegraph - 🏆 562. / 51 Read more »