According to Lisa Braganca, a former enforcement branch chief at the U.S. Securities and Exchange Commission, the failure of FTX may prompt more calls for regulation on Capitol Hill, but she is skeptical that Congress will take any action.
During an appearance on CoinDesk’s “First Mover” program on Wednesday, Braganca stated, “I have serious doubts still about whether Congress wants to step in and do something rather than letting the SEC and the CFTC (Commodity of Futures Trading Commission) figure it out.” “This is difficult.”
The CFTC and SEC have previously urged Congress to establish precise rules for regulating digital assets and allocating the responsibility to the two agencies.
Sam Bankman-Fried created and is the CEO of the cryptocurrency exchange FTX, which has caused problems for regulators in part because of his close ties to parliamentarians, according to Braganca.
Consider how much work SBF put into persuading someone to take the initiative and implement rules; suddenly everything has fallen through, she remarked.
According to Braganca, lawmakers require trusted experts and organizations because they lack the skills to “just figure this all out on their own.”
Following a chain of events that began with a coin desk report about the financial health of its sister company, Alameda Research, FTX sought bankruptcy protection in the US last week. The company is currently under federal investigation, which Braganca described as a “bigger mess” for developing new regulations. She claimed that it produced a wide range of regulatory barriers.
Bankman-Fried, meanwhile, is creating a difficult situation for his own legal team after he took to Twitter to provide his own interpretation of the events despite numerous ongoing criminal investigations.
All of the attorneys in this case are furious at the moment, Braganca claimed. You should never want your clients to engage in this.Share & like