US Congressman Tom Emmer declares FTX meltdown says it’s not a problem. Cryptocurrencies failed, but SEC Chairman Gary Gensler, former FTX CEO Sam Bankman-Fried, and centralized finance fail. “We need to get to the bottom of this matter. We need to understand why Gary Gensler and the SEC didn’t work,” said Rep. Emmer. Congressman Says FTX Fallout Is Not a Cryptocurrency Failure
US Congressman Tom Emer (R-Minnesota) said Tuesday that the implosion of crypto exchange FTX is not a cryptocurrency failure. Instead, he said it was the failure of centralized finance (cefi), Securities and Exchange Commission (SEC) Chairman Gary Gensler and former FTX CEO Sam Bankman-Fried.
FTX’s collapse is not a cryptocurrency failure. This is the failure of cefi, Gary Gensler and Sam Bankman-Fried. The point is decentralization.
In an interview with Fox Business Tuesday, Emmer further described the FTX meltdown as a failure of “business ethics,” “government oversight,” and “regulatory procedures.” .
He began referring to reports that the SEC allegedly met with his Bankman-Fried in March and worked to give FTX special treatment. The legislator confirmed his office was looking into the matter. However, when the former FTX CEO’s proposal finally came to light, the crypto industry quickly raised multiple red flags. It looks like Gensler’s failure to actually deal with the bad guys.
Rep. Just as Gensler wasn’t there to handle FTX, when he had to file for bankruptcy earlier this year, lawmakers put Celsius Network and Voyager Digital to work. Emer said he wasn’t there to deal with Terra/Luna when the cryptocurrency collapsed in May. Addressing is “exactly what he [Gensler] should do,” exclaimed the MP, emphasizing: After making backroom deals with good actors in the community, they show up with people doing nefarious things.
“We need to get to the bottom of this matter. We need to understand why Gary Gensler and the SEC did not work. “There is,” Emmer stressed. “We need to understand how this was allowed before people and their savings were hurt.
MPs noted that regulators are pursuing decentralized finance (defi). “This is not a problem,” he warned, concluding:
It’s not about the crypto industry. About Sam Bankman-Fried. It’s about Gary Gensler, the regulator, and it’s about centralized finance that needs to come under the umbrella of regulation. Gary Gensler did nothing to make it happen.
Emmer wasn’t the only one to warn about centralized finance. Ethereum co-founder Vitalik Buterin similarly said, “Anything centralized is suspect by default.” Matt Huang, co-founder of investment firm Paradigm, explains: Additionally, Shark Tank star and owner of NBA team Dallas He said the recent failures of cryptocurrency companies are not limited to cryptocurrencies.
Minnesota congressmen have repeatedly criticized Gensler’s approach to regulation. “Under Gensler, the SEC has become a power-hungry regulator,” he said in June, accusing the securities watchdog of failing to regulate with integrity.
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