Is SEC Chairman Gary Gensler helping Sam Bankman-Fried find regulatory loopholes for FTX? Here’s what you need to know

Speculation is growing in the community that Securities and Exchange Commission (SEC) Chairman Gary Gensler may have worked with FTX co-founder Sam Bankman-Fried to find regulatory loopholes that the exchange may have found. translation can be taken advantage of.

Speculation arose as the relationship between Sam Bankman-Fried, his parents Joseph Bankman and Barbara Fried, and prominent figures at the highest levels of government and regulatory agencies in the United States, has been exposed in recent days. And on top of that, Bankman-Fried himself was a major political donor, primarily to the Democratic Party.

Rumors have become so intense in recent days that Republican Representative Tom Emmer, known as one of the most crypto-friendly members of the House, tweeted that he had received the report. reports that Gary Gensler is helping Bankman-Fried “work on the legal loophole to get a regulatory monopoly.”

“We are looking into this,” the crypto-friendly politician added.

One possible explanation for the reports Emmer is referring to is FTX’s acquisition of US-based crypto lender BlockFi, which already has the necessary regulatory approvals in the US. . By acquiring this company, Bankman-Fried may have thought that regulatory approvals would also extend to FTX, giving the exchange a major advantage over global rival Binance and others. .

Relationship with the Democratic Party

Notably, Emmer’s tweet comes a day after a Fortune article revealed that Bankman-Fried’s mother, Barbara Fried, is the leader of a group called Mind the Gap that specializes in raising money from the industry. technology for the Democratic Party.

In a 2020 article in The Stanford Daily, Mind the Gap was described as a “Stanford-linked secret Democratic fundraising group” that transferred more than $20 million to Democratic candidates. in the 2018 House of Representatives elections.

Meanwhile, Bankman-Fried’s father, Stanford law professor Joseph Bankman, also has close ties to leading politicians. Previously, he drafted tax legislation for Senator Elizabeth Warren, a Democrat known for her opposition to cryptocurrencies and specifically crypto mining.

SEC Chairman Gary Gensler also has ties to the Democratic Party and previously served as chairman of finance for Hillary Clinton’s presidential campaign.

Read more: CryptoCom Recovers $990 Million From FTX, CEO Says Strong Balance Sheet

“It is not too much to imagine that [Sam Bankman-Fried] has sought to exploit these political connections for his own benefit,” the Fortune article said, adding that now is “the time.” good point for skeptics to question why [Gensler] couldn’t stop FTX in the first place — and if anyone else in high places had a role in creating this failure. “

Finally, and perhaps unsurprisingly, speculation about a relationship between Bankman-Fried and prominent government figures is also rampant in the community.

Among those who expressed their views was popular crypto Twitter user Tara Bull, who asked if FTX was “used to launder money for the Democrats?”

“A question worth asking,” replied new Twitter owner and popular Dogecoin fan Elon Musk.

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