U.S. congressman accuses crypto billionaires of lobbying to curb regulation in Washington

U.S. Representative Brad Sherman accused cryptocurrency billionaires of lobbying in Washington on behalf of their interests to curb regulation of the digital-asset industry.

The collapse of #FTX, one of the largest cryptocurrency firms in the world, is a dramatic demonstration of both the inherent risks of digital assets and the critical weaknesses in the industry that has grown up around them.

Read my full statement ⬇️https://t.co/rcALYHoM2U

— Congressman Brad Sherman (@BradSherman) November 13, 2022

Sherman called for an the collapse of the FTX crypto exchange, to hold those responsible to account and to take more aggressive steps to regulate the sector.

«The sudden collapse of one of the world’s largest cryptocurrency companies has been a dramatic demonstration of the risks of digital assets and the critical weaknesses in the industry», he wrote.

The congressman also noted that in May, Sam Bankman-Fried announced plans to earmark up to $1 billion for the 2024 U.S. presidential election. In October, he called his words ‘foolish’.

According to OpenSecrets, affiliated with Bankman-Fried companies FTX US and Alameda Research donated $5.22 million and $6.24 million to Joe Biden’s 2020 presidential campaign fund.

According to Sherman, most of this money was spent on primaries, “not on helping Democrats defeat Republicans.”

The co-CEO of FTX Digital Markets, Ryan Salame, donated more than $23 million to Republican candidates in the 2022 U.S. Senate elections.

«When you look at FTX’s efforts to influence Washington, you should look at both chief executives, not just the eccentric man in shorts», Sherman added.

As Bloomberg reported on November 9, the start of an investigation into FTX by the SEC and CFTC.

Read ForkLog’s Bitcoin news in our Telegram — cryptocurrency news, prices and analysis.