FTX case: is the White House in trouble?

From hero to zero – The White House has announced that it is following very closely the development of theFTX affair and its repercussions on the crypto ecosystem. As a reminder, FTX CEO Sam Bankman-Fried was Joe Biden’s second campaign donor.

The White House is following the FTX affair closely

It is therefore through the voice of the press secretary of the White House, Karine Jean-Pierre, that the information was made public on November 10. According to her, the President Joseph Biden is aware of the bankruptcy of FTX and his administration will follow the progress through the financial authorities of the country of Uncle Sam.

“The administration […] has always maintained that, without proper oversight, cryptocurrencies could harm ordinary Americans. The latest news highlights these concerns and the need for careful regulation of cryptocurrencies. »

White House spokesperson.

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Obscure relations between Bankman-Fried and the American administration?

This reaction is thus added to many others from American state agencies. Maxine Waterschair of the House Financial Services Committee, urged the federal government to increase oversight of exchanges to strengthen consumer protection.

On the other hand, the Republican in the House of Representatives Tom Emmer accused the chairman of the Securities and Exchange Commission (the SEC, the American financial policeman), Gary Gensler, for working with the ousted CEO of FTX Sam Bankman-Fried to establish a “regulatory monopoly”. Several voices have been raised in recent days to claim that Gary Gensler was necessarily aware of the situation. Indeed, it exchanged with Bankman-Fried a few days before the announcement of the liquidation of FTX.

The FTX founder was Joe Biden’s second presidential campaign contributor

Of course, this event falls very badly, beyond the immediate financial consequences, since the USA had until then a position rather favorable to the development of cryptocurrencies. Several states were on the way to adoption, with the possibility of being able to pay taxes in Bitcoin. In March, Joe Biden signed an executive order to establish a framework for cryptocurrencies.

A series of reports from various ministries and financial organizations followed. The goal was to learn more about the opportunities and the risks represented by cryptocurrencies. Their findings point to a need for more research on stablecoins and the issuance of a state digital currency. It’s hard to imagine that a section on the regulation of exchanges will not be added to this list from now on…

As a reminder, Sam Bankman-Fried contributed $5 million to Joe Biden’s campaign. With the more or less assumed objective of obtaining a position of undisputed leader in the USA. Or to obtain political favors in the event of a hard blow? The future will tell…

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