US Congressman defends decentralization, blames SBF, Gensler, CeFi for FTX collapse

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U.S. Con­gress­man Tom Emmer said FTX’s col­lapse was not a cryp­to fail­ure; instead, it was a fail­ure of cen­tral­ized finance (CeFi), Sam Bankman-Fried, and SEC’s Chair­man Gary Gensler in a Nov. 22 Fox Busi­ness interview.

Emmer said FTX’s col­lapse was also a fail­ure of busi­ness ethics, gov­ern­ment over­sight, and reg­u­la­to­ry oversight.

Emmer carpets Gensler

The Min­neso­ta Rep­re­sen­ta­tive ques­tioned the role of the SEC chair, Gary Gensler, in the FTX fias­co. He high­light­ed the meet­ing between the reg­u­la­tor and SBF in March. Emmer said:

“They were work­ing with Sam Bankman-Fried and oth­ers to give them spe­cial treat­ment from the SEC that oth­ers aren’t getting.”

The law­mak­er also crit­i­cized the SEC’s fail­ure to inves­ti­gate bad actors in the cryp­to space. Emmer won­dered what the reg­u­la­tor was doing when sev­er­al cryp­to firms like Ter­ra Luna, Voy­ager Dig­i­tal, and Cel­sius col­lapsed.

Instead, he alleged the Com­mis­sion was work­ing on “back­room deals” with the bad guys while inves­ti­gat­ing and pros­e­cut­ing the good actors in the community.

“We need to get to the bot­tom of this—we need to under­stand why Gary Gensler and the SEC were not doing their job. We need to under­stand how this was allowed to get to the point where people’s sav­ings are get­ting hurt.”

Mean­while, the law­mak­er said his office was inves­ti­gat­ing if the SEC chair­man Gary Gensler was help­ing Sam Bankman-Fried and FTX obtain a reg­u­la­to­ry monopoly.

Criticizes mainstream coverage of SBF

Emmer also crit­i­cized the New York Times for writ­ing a puff on Sam Bankman-Fried. He said he did not under­stand why the media firm would write such a piece on “a guy who mis­man­aged funds.”

The cryp­to com­mu­ni­ty severe­ly crit­i­cized main­stream media out­lets for por­tray­ing Sam Bankman-Fried as a vir­tu­ous individual.

Emmer absolves crypto of blame

The U.S. law­mak­er reit­er­at­ed that the FTX fail­ure was not about cryp­to or decen­tral­ized finance. Accord­ing to him, the focus should be on cen­tral­ized finance and the need to reg­u­late it.

“Decen­tral­ized finance is not what it’s about. It’s not about the cryp­to indus­try, this is about Sam Bankman-Fried and regulators.”

Post­ed In: FTX, U.S., Peo­ple



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