U.S. Congressman Tom Emmer says the FTX meltdown is not a crypto failure but a failure with SEC Chairman Gary Gensler, former FTX CEO Sam Bankman-Fried, and centralized finance. “We need to get to the bottom of this. We need to understand why Gary Gensler and the SEC were not doing their job,” the lawmaker stressed.
Rep. Emmer Says FTX Fallout Isn’t a Crypto Failure
U.S. Congressman Tom Emmer (R-MN) stated Tuesday that the implosion of cryptocurrency exchange FTX is not a crypto failure. Instead, he said it is a failure with centralized finance (cefi), Securities and Exchange Commission (SEC) Chairman Gary Gensler, and former FTX CEO Sam Bankman-Fried.
The lawmaker tweeted:
FTX’s collapse is not a crypto failure. It’s a failure with cefi, Gary Gensler, and Sam Bankman-Fried. Decentralization is the point.
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 proceeded to reference reports that the SEC met with Bankman-Fried in March and was allegedly working to give FTX special treatment. The lawmaker confirmed that his office is looking into the matter.
Emmer added that Bankman-Fried also pushed for “special treatment legislation through Congress.” However, when the former FTX CEO’s proposal was finally revealed, the crypto industry immediately raised multiple red flags. The lawmaker emphasized:
It’s a failure, it appears, of Gary Gensler to actually deal with the bad guys.
The congressman pointed out that Gensler was never there to deal with Celsius Network and Voyager Digital when they had to file for bankruptcy earlier this year, just like he was not there to deal with FTX. He was also not there to deal with terra/luna when the cryptocurrency collapsed in May, Emmer said.
Dealing with bad actors “is exactly what he [Gensler] is supposed to be doing,” the congressman exclaimed, stressing:
What is the regulator responsible for this doing, going after good actors in the community, and working backroom deals, it appears, with people who’s doing nefarious things.
“We need to get to the bottom of this. We need to understand why Gary Gensler and the SEC were not doing their job,” Congressman Emmer emphasized. “We need to understand how this was allowed to get to the point where people and their savings are getting hurt. That’s exactly what the regulator’s supposed to be taking care of.”
The lawmaker noted that regulators are going after decentralized finance (defi). “This is not what it’s about,” he cautioned, concluding:
It’s not about the crypto industry. This is about Sam Bankman-Fried. It’s about the regulator, Gary Gensler, and it’s about centralized finance, which needs to be brought under a regulatory umbrella. Gary Gensler has done nothing to make that happen.
Emmer is not the only one who has warned about centralized finance. Ethereum co-founder Vitalik Buterin similarly said that “centralized anything is by default suspect.” Investment firm Paradigm co-founder Matt Huang explained: “The issues at FTX are precisely ones that decentralized finance can solve through increased transparency and security.” Moreover, Shark Tank star and the owner of the NBA team Dallas Mavericks, Mark Cuban, said that recent failures of crypto companies are not crypto-specific.
The congressman from Minnesota has repeatedly criticized Gensler for his approach to regulation. In June, he slammed the securities watchdog for not regulating in good faith, stating that “Under Chair Gensler, the SEC has become a power-hungry regulator.”
Do you agree with Congressman Tom Emmer? Let us know in the comments section below.
Source: Regulation Archives – Bitcoin News
Crypto Exchange Kraken Settles With Treasury Department Over Sanctions Violations
Crypto exchange Kraken has settled with the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) over its apparent violations of sanctions against Iran. The cryptocurrency exchange has agreed to remit $362,159 to settle its potential civil liability and invest an additional $100,000 in certain sanctions compliance controls. Kraken Settles With OFAC The […]
Crypto exchange Kraken has settled with the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) over its apparent violations of sanctions against Iran. The cryptocurrency exchange has agreed to remit $362,159 to settle its potential civil liability and invest an additional $100,000 in certain sanctions compliance controls.
Kraken Settles With OFAC
The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) announced Monday a settlement with Payward Inc. (d/b/a Kraken), a Delaware-incorporated crypto exchange. The announcement states:
Kraken agreed to remit $362,158.70 to settle its potential civil liability for apparent violations of sanctions against Iran … As part of its settlement with OFAC, Kraken also has agreed to invest an additional $100,000 in certain sanctions compliance controls.
According to the Treasury Department, between approximately Oct. 14, 2015, and June 29, 2019, “Kraken processed 826 transactions, totaling approximately $1,680,577.10, on behalf of individuals who appeared to have been located in Iran at the time of the transactions.”
The Department of the Treasury detailed:
At the time of the apparent violations, Kraken did not implement IP address blocking on transactional activity across its platform.
Kraken voluntarily self-disclosed the apparent violations and cooperated with the OFAC’s investigation, the Treasury Department noted, adding that the crypto trading platform also “undertook significant remedial measures in response to the apparent violations.” The announcement adds:
After identifying this problem, Kraken implemented automated blocking for IP addresses linked to sanctioned jurisdictions. Kraken also implemented multiple blockchain analytics tools to assist with its sanctions monitoring.
The Office of Foreign Assets Control has sanctioned several cryptocurrency trading platforms over time. For example, crypto exchange Bittrex was charged with sanctions violations in October.
What do you think about Kraken settling with the Treasury Department’s OFAC over sanctions violations? Let us know in the comments section below.
Source: Regulation Archives – Bitcoin News