Politicians backed by the embattled digital asset exchange FTX have a difficult decision ahead, according to Ron Hammond, the director of government relations for crypto lobbying group Blockchain Association.
Hammond ເວົ້າວ່າ FTX chief executive Sam Bankman-Fried (SBF) personally lobbied Washington DC lawmakers more than any other CEO, “crypto or not.”
“As the election ramped up, so did concerns about his donations to members while also aggressively lobbying for the controversial Digital Commodity Consumer Protection Act (DCCPA). Political donations are nothing new, but the number and amount of donations were eye-popping.
As these political donations were occurring (again want to harp this is common in campaigns), FTX was lobbying for the passage of the DCCPA.”
ໄດ້ DCCPA would vest the Commodity Futures Trading Commission (CFTC) with the authority to regulate the trading of digital commodities.
Hammond says FTX’s involvement in lobbying for the bill presents legislators with a dilemma.
“Some unanswered questions: what happens to those Members who took SBF’s campaign contributions (which is a LOT of members) if DCCPA comes to a vote? DCCPA is largely viewed as an FTX proposal and the political ramifications/optics of voting or moving this bill could be bad.
Will the recent Tether developments spur Congress to move on stablecoin legislation more quickly or potentially combine it into a market protection bill? Stablecoin legislation is likely the first thing Congress will tackle in 2023, but many in Congress will want more done.
How will the crypto industry change lobbying tactics in wake of FTX’s blunder? Many in the industry forget that there are other stakeholders whose input is solicited in legislation (regulators, academia, consumer groups, international regs, etc). A divided industry will lose.”
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Source: https://dailyhodl.com/2022/11/12/crypto-insider-says-ftx-backed-us-politicians-face-difficult-decision-on-upcoming-defi-regulation-heres-why/