US Congressman Tom Emmer stressed in his statements that the collapse of FTX is not a failure of cryptocurrencies, but a failure of SEC Chairman Gary Gensler, former FTX CEO Sam Bankman-Fried and central finance/finance (CeFi) in general.
“We need to get to the bottom of this. We need to understand why Gary Gensler and the SEC didn’t do their job,” the lawmaker said.
The congressman tweeted:
“The FTX collapse is not a failure of cryptocurrencies. It is a failure of Cefi, Gary Gensler and Sam Bankman-Fried. Decentralization is what’s at stake.”
The failure of these
In an interview on Fox Business Tuesday, Emmer further described the FTX collapse as a failure of “business ethics,” “government oversight,” and “regulatory processes.”
In fact, the Congressman went on to report that the SEC met with Bankman-Fried last March and was allegedly working to give FTX special treatment. The Congressman confirmed that his office is investigating the matter.
Emmer added that Bankman-Fried pushed for “special treatment legislation through Congress.” However, when the former FTX CEO’s proposal was finally revealed, the cryptocurrency industry immediately raised several red flags.
The Congressman pointed out:
“It’s a failure, it seems, of Gary Gensler to really confront the bad guys.”
He wasn’t there in the previous scandals either
The MP pointed out that Gensler was never there to deal with Celsius Network and Voyager Digital when they had to file for bankruptcy, just as he was never there to deal with FTX. He also wasn’t there to deal with terra luna when it collapsed last May.
Dealing with bad actors “is exactly what Gensler is supposed to do,” the MP said, adding: “What is the regulator responsible for doing, going after good actors in the community and working for backroom deals – it seems – with people who are doing bad things.
We need to get to the bottom of this. We need to understand why Gary Gensler and the SEC didn’t do their job,” said Congressman Emmer, adding, “We need to understand how this has allowed it to get to the point where people and their savings are hurting. This is exactly what the regulator needs to take care of.”
Pursuing decentralised funding
The lawmaker noted that regulators are pursuing decentralized finance (defi): “It should not be about that,” he warned, concluding: “It’s not about the cryptocurrency industry. It’s about Sam Bankman-Fried. It’s about the regulator, Gary Gensler, and it’s about centralized finance, which needs to be brought under a regulatory umbrella. Gary Gensler has done nothing to make that happen.”
He’s not the only one.
Emmer is not the only one who has warned about central finance (CeFi). Ethereum co-founder Vitalik Buterin similarly pointed out that “anything that is centralized (centralized) is by definition suspect.”
Co-founder of investment firm Paradigm, Matt Huang, explained in this regard, “The issues in FTX are exactly what decentralized finance can solve through increased transparency and security.”
Furthermore, Shark Tank star and owner of the NBA’s Dallas Mavericks team, Mark Cuban, stated that the recent failures of cryptocurrency companies are not due to cryptocurrencies.
The congressman from Minnesota has repeatedly criticized Gensler for his approach to regulation. In June he expressed the view that securities oversight that is not regulated in good faith, stating that “Under Chairman Gensler, the SEC has become a power-hungry regulator.”