Crypto Frontline

United States – Legislation for cryptocurrency is on its way regardless of the reason. The crisis of FTS might have affected the banking committee, which is why the Senate of the United States or the US focuses on the regulation of digital assets. 

Senator Elizabeth Warren revealed at the hearing bipartisan regulation targeted at cracking down on digital assets being utilized in money laundering. The regulation is co-sponsored by Senator Roger Marshall, and he requires cryptocurrency trading to validate customer individualities, like other funding institutions and banks do.

Warren stated that cryptocurrency became the desired tool for terrorists, drug dealers, rogue states, and ransomware gangs that want to launder cash. He also stated that digital asset doesn’t get a way to help the worst criminals in the world, regardless of how many television advertisements they run or contribute. 

Cynthia Lummis, a Republican senator of Wyoming, along with Kirsten Gillibrand, a Democratic Senator in New York. It would reintroduce their legislation, the act would need consumer protection and disclosure from cryptocurrency issuers. 

Lummis, like some other Republicans on the funding committee, stated the suspected funding crimes of SBF or Sam Bankman-Fried, the CEO of FTX, should not be utilized to target cryptocurrency more commonly. She said to separate cryptocurrency from corrupt organizations. She added that FTX is a good, antiquated fraud. 

On the other hand, Senator Sherrod Brown, a democratic and the Senate Committee on Banking’s chairman asked the four witnesses during the hearing, which are two critics and two cryptocurrency proponents. 

Hilary J. Allen from the American University Washington College of Law testified that the present environment cryptocurrency operates in is highly favorable to fraud. She said that SBF might have engaged in old embezzlement. However, the embezzlement was able to achieve a scale and go unnoticed for a long time since the opacity is crypto-shrouded. 

Kevin O’Leary, an entrepreneur, disagreed with the characterization despite earning $15 million, as per his show “Shark Tank.” He earned this money as a paid spokesperson for the bankrupted FTX. He stated that blockchain technology, digital payment systems, and cryptocurrency

O’Leary also confirmed that SBF told him that the crisis of FTX was because of the battle with Binance, a cryptocurrency platform. He stated that the two behemoths that possessed the unsecured crypto market together, which are at war with one another. One puts the other crypto platform out of business. 

Federal prosecutors stated that SBF defrauded FTX clients and investors at the beginning of 2019, wherein the CEO of FTX illegally diverted the money to cover debts, liabilities, and risky exchanges at the hedge fund from 2017, which was the Alameda Research. The authorities arrested SBF in the Bahamas.