Politicians backed by the embattled digital asset change FTX have a troublesome determination forward, based on Ron Hammond, the director of presidency relations for crypto lobbying group Blockchain Affiliation.
Hammond says FTX chief govt Sam Bankman-Fried (SBF) personally lobbied Washington DC lawmakers greater than every other CEO, “crypto or not.”
“Because the election ramped up, so did issues about his donations to members whereas additionally aggressively lobbying for the controversial Digital Commodity Shopper Safety Act (DCCPA). Political donations are nothing new, however the quantity and quantity of donations have been eye-popping.
As these political donations have been occurring (once more need to harp that is frequent in campaigns), FTX was lobbying for the passage of the DCCPA.”
The DCCPA would vest the Commodity Futures Buying and selling Fee (CFTC) with the authority to regulate the buying and selling of digital commodities.
Hammond says FTX’s involvement in lobbying for the invoice presents legislators with a dilemma.
“Some unanswered questions: what occurs to these Members who took SBF’s marketing campaign contributions (which is a LOT of members) if DCCPA involves a vote? DCCPA is essentially considered as an FTX proposal and the political ramifications/optics of voting or transferring this invoice may very well be dangerous.
Will the current Tether developments spur Congress to maneuver on stablecoin laws extra rapidly or doubtlessly mix it right into a market safety invoice? Stablecoin laws is probably going the very first thing Congress will deal with in 2023, however many in Congress will need extra carried out.
How will the crypto business change lobbying techniques in wake of FTX’s blunder? Many within the business neglect that there are different stakeholders whose enter is solicited in laws (regulators, academia, client teams, worldwide regs, and so on). A divided business will lose.”
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