{"id":8749,"date":"2022-11-24T18:31:28","date_gmt":"2022-11-24T18:31:28","guid":{"rendered":"http:\/\/cryptoheretostay.com\/?p=8749"},"modified":"2022-11-24T18:31:29","modified_gmt":"2022-11-24T18:31:29","slug":"us-lawmaker-ftx-collapse-isnt-a-crypto-failure-its-a-failure-of-sec-bankman-fried-centralized-finance","status":"publish","type":"post","link":"https:\/\/cryptoheretostay.com\/?p=8749","title":{"rendered":"US Lawmaker: FTX Collapse Isn&#8217;t a Crypto Failure \u2014 It&#8217;s a Failure of SEC, Bankman-Fried, Centralized Finance"},"content":{"rendered":"<p> <script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"crypto\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script><br \/>\n<\/p>\n<p><strong>U.S. Congressman Tom Emmer says the FTX meltdown is not a crypto failure but a failure with SEC Chairman Gary Gensler,<\/strong><strong> former FTX CEO Sam Bankman-Fried, and centralized finance. \u201cWe need to get to the bottom of this. We need to understand why Gary Gensler and the SEC were not doing their job,\u201d the lawmaker stressed.<\/strong><\/p>\n<h2>Rep. Emmer Says FTX Fallout Isn\u2019t a Crypto Failure<\/h2>\n<p>U.S. Congressman Tom Emmer (R-MN) stated Tuesday that the implosion of cryptocurrency exchange FTX is not a crypto failure. Instead, he said it is a failure with centralized finance (cefi), Securities and Exchange Commission (SEC) Chairman Gary Gensler, and former FTX CEO Sam Bankman-Fried.<\/p>\n<p>The lawmaker tweeted:<\/p>\n<p>FTX\u2019s collapse is not a crypto failure. It\u2019s a failure with cefi, Gary Gensler, and Sam Bankman-Fried. Decentralization is the point.<\/p>\n<p>In an interview with Fox Business Tuesday, Emmer further described the FTX meltdown as a failure of \u201cbusiness ethics,\u201d \u201cgovernment oversight,\u201d and \u201cregulatory procedures.\u201d<\/p>\n<p>He proceeded to reference reports that the SEC met with Bankman-Fried in March and was allegedly working to give FTX special treatment. The lawmaker confirmed that his office is looking into the matter.<\/p>\n<p>Emmer added that Bankman-Fried also pushed for \u201cspecial treatment legislation through Congress.\u201d However, when the former FTX CEO\u2019s proposal was finally revealed, the crypto industry immediately raised multiple red flags. The lawmaker emphasized:<\/p>\n<p>It\u2019s a failure, it appears, of Gary Gensler to actually deal with the bad guys.<\/p>\n<p>The congressman pointed out that Gensler was never there to deal with Celsius Network and Voyager Digital when they had to file for bankruptcy earlier this year, just like he was not there to deal with FTX. He was also not there to deal with terra\/luna when the cryptocurrency collapsed in May, Emmer said.<\/p>\n<p>Dealing with bad actors \u201cis exactly what he [Gensler] is supposed to be doing,\u201d the congressman exclaimed, stressing:<\/p>\n<p>What is the regulator responsible for this doing, going after good actors in the community, and working backroom deals, it appears, with people who\u2019s doing nefarious things.<\/p>\n<p>\u201cWe need to get to the bottom of this. We need to understand why Gary Gensler and the SEC were not doing their job,\u201d Congressman Emmer emphasized. \u201cWe need to understand how this was allowed to get to the point where people and their savings are getting hurt. That\u2019s exactly what the regulator\u2019s supposed to be taking care of.\u201d<\/p>\n<p>The lawmaker noted that regulators are going after decentralized finance (defi). \u201cThis is not what it\u2019s about,\u201d he cautioned, concluding:<\/p>\n<p>It\u2019s not about the crypto industry. This is about Sam Bankman-Fried. It\u2019s about the regulator, Gary Gensler, and it\u2019s about centralized finance, which needs to be brought under a regulatory umbrella. Gary Gensler has done nothing to make that happen.<\/p>\n<p>Emmer is not the only one who has warned about centralized finance. Ethereum co-founder Vitalik Buterin similarly said that \u201ccentralized anything is by default suspect.\u201d Investment firm Paradigm co-founder Matt Huang explained: \u201cThe issues at FTX are precisely ones that decentralized finance can solve through increased transparency and security.\u201d Moreover, Shark Tank star and the owner of the NBA team Dallas Mavericks, Mark Cuban, said that recent failures of crypto companies are not crypto-specific.<\/p>\n<p>The congressman from Minnesota has repeatedly criticized Gensler for his approach to regulation. In June, he slammed the securities watchdog for not regulating in good faith, stating that \u201cUnder Chair Gensler, the SEC has become a power-hungry regulator.\u201d<\/p>\n<p>Tags in this story<\/p>\n<p>Cefi, Centralized Finance, crypto failure, decentralized finance, DeFi, ftx, FTX collapse, FTX failure, FTX failure Gary Gensler, FTX regulators, Gary Gensler, SEC, SEC FTX, tom emmer, Tom Emmer FTX, us congressman, us lawmaker<\/p>\n<p><em><strong>Do you agree with Congressman Tom Emmer? Let us know in the comments section below.<\/strong><\/em><\/p>\n<p>Kevin Helms <\/p>\n<p class=\"article__body__author__info__about\">\nA student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.<\/p>\n<p><i class=\"td-icon-font td-icon-mail-1\"\/><\/p>\n<p class=\"images_credits\"><em>Image Credits: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n<p><strong>Disclaimer<\/strong>: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.<\/p>\n<p>More Popular NewsIn Case You Missed It<\/p>\n<p><script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"bitcoin\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script><br \/>\n<br \/><a href=\"https:\/\/news.bitcoin.com\/us-lawmaker-ftx-collapse-isnt-a-crypto-failure-its-a-failure-of-sec-bankman-fried-centralized-finance\/\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>U.S. Congressman Tom Emmer says the FTX meltdown is not a crypto failure but a failure with SEC Chairman Gary Gensler, former FTX CEO Sam Bankman-Fried, and centralized finance. \u201cWe need to get to the bottom of this. We need to understand why Gary Gensler and the SEC were not doing their job,\u201d the lawmaker [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":8750,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_wp_rev_ctl_limit":""},"categories":[1],"tags":[],"class_list":["post-8749","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto-updates"],"_links":{"self":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/8749","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=8749"}],"version-history":[{"count":1,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/8749\/revisions"}],"predecessor-version":[{"id":8751,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/8749\/revisions\/8751"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/media\/8750"}],"wp:attachment":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=8749"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=8749"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=8749"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}