Law Decoded, Nov. 7–14: How regulators reacted to the FTX crash
Last week was tough — the alarming series of crypto meltdowns continued with the failure of FTX, one of the biggest exchanges on the market. The crypto industry’s very own “Lehman Brothers moment” pushed regulators to react. United States Senator Cynthia Lummis, famous for her openly pro-crypto position, promised deliberate with her colleagues on whether there was market manipulation, while Maxine Waters, chair of the United States House of Representatives Financial Services Committee, pushed for additional federal oversight of crypto trading platforms and consumer protection.
European Parliament economics committee member Stefan Berger has compared the current situation with FTX to the 2008 financial crisis and said that the Market in Crypto Assets (MiCA) framework should prevent such crises in Europe. United States senators Debbie Stabenow and John Boozman have doubled down on their commitment to publishing a final version of the Digital Commodities Consumer Protection Act 2022.
Tom Emmer, the recently reelected Republican representative representing Minnesota’s 6th district in the United States House of Representatives, shocked the public with allegations that the Securities Exchange Commission (SEC) helped the FTX to obtain a “monopoly” in the U.S. Specifically, Emmer believes the SEC Chair Gary Gensler to be the one who was helping Sam Bankman-Fried and FTX “work on legal loopholes.” However, the lawmaker did not provide any evidence, claiming that his office is working on it.
Results from many election races for seats in the United States Senate and House of Representatives are still coming in, but a number of candidates who have expressed staunch views on digital asset regulation won on Nov. 8. Pro-crypto House
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