While U.S. Representative Brad Sherman viewed Sam Bankman-Fried as the face of the cryptocurrency industry, Congressman Tom Emmer emphasized the crypto community’s role in exposing the alleged FTX fraud.
The arrest of former FTX CEO Sam Bankman-Fried by Bahamian authorities prompted critics of cryptocurrencies to raise concerns about the risks associated with cryptocurrencies. While some political figures attribute SBF’s alleged fraud to the crypto ecosystem, others see no justification in holding an entire sector responsible for the actions of one individual.
During a hearing on FTX held by the House Financial Services Committee, Congressman Brad Sherman stated that he did not perceive any distinction between SBF and a sector whose market cap once reached $2 trillion.
He claimed that nonfungible tokens (NFTs) and cryptocurrencies are only being bought to sell them later for a profit.
Additionally, he emphasized how businesspeople like “Sam Bankman-Fried would tell you there’s a hell of a market for bankruptcy court avoidance.” And claimed that cryptocurrency helps criminals evade taxes.
On the other hand, Congressman Tom Emmer separated the FTX consequences from the foundation of cryptocurrencies while addressing the hearing. Emmer countered by saying that the immutability of blockchain technology allowed the cryptocurrency industry to identify inconsistencies in the FXT Token FTT $1.39, which ultimately resulted in SBF’s arrest.
According to Emmer, information recorded on the public blockchain will aid law enforcement in delving into the subtleties of potential crimes.
“I encourage my colleagues to understand Sam Bankman-deception Fried’s for what it is — a failure of centralization, a failure of business ethics, and a crime. It is not a technological failure.”
While critics attempt to link SBF’s actions to cryptocurrency and blockchain concepts, the case for decentralization grows stronger. Traceability is enabled via public blockchain-based crypto ecosystems, which can assist authorities with anti-money laundering measures.
Despite the federal government’s decade-long opposition to cryptocurrency, there is still some support for it in the United States Senate. Senator Cynthia Lummis, a pro-crypto supporter, sees Bitcoin’s BTC $17,821 price as a realistic addition to 401(k) retirement plans, indicating her disdain for the lengthy but brief, down market:
“I’m extremely comfortable ensuring that people can put Bitcoin in their retirement savings since it’s just different from other cryptocurrencies.”
Lummis is betting on Bitcoin’s scarcity, which she believes will help enhance the asset’s value over time.