FTX, once amongst the world’s biggest cryptocurrency exchanges going bankrupt, was the world’s biggest crypto news.
This single incident has put regulators across the globe under immense pressure. Society across the world was expecting immediate regulatory protection for the billions of dollars invested in various centralized exchanges.
The New Year has started, but the investors still need to finalize a single bill or provision. Regulators are confused and have different opinions about crypto regulation.
As a result, there is no consensus about how to regulate cryptocurrency markets.
Some experts believe that regulators are trying to understand the changing dynamics of currency crypto markets and reevaluating the market situations.
Experts also believe that legislators are also determining the scope of regulatory needs of the cryptocurrency market.
What Bloomberg Experts Think of Current Crypto Currency Regulatory Situation
According to Bloomberg, Lawmakers are taking longer than usual because they want these new regulations to be more productive and protective.
Moreover, they are also nervous that these regulations will not create another crisis in the slowly recovering cryptocurrency marketplace.
Despite the fact that U.S. Congress is ordering the SEC to adopt the rapid regulatory provisions regarding the trade of cryptocurrencies, SEC members are patient in their approach.
Currently, the multiple proposals are in their development phase. These proposals will enforce the banking and taxation laws in the cryptocurrency sector.
These regulations are extremely important to protect investors from further losses and add credibility to the market.
Senator Roger Marshall is another individual who has proposed implementing strict crypto regulations.
All the Regulators Are Not Against Cryptocurrencies, Some Have Taken a Stance to Preserves These Currencies
In his recent statement, few officials have voiced favor of cryptocurrencies. Patrick McHenry most notably added that the SEC should focus on separating corrupt and ethical practices.
He also added that for the few bad actions of some individuals, the whole industry should not suffer. McHenry will be the one leading the Financial Services Committee in Congress.
On the flip side, Congress is currently working on a bill that would give the CFTC the additional power to regulate the trade of cryptocurrency. The bill was expected to be approved by the early months of the New Year.
But due to some technical reasons, the bill will be approved at the end of this year. Moreover, investigations are also being launched regarding Sam Bankman-Fried’s donations to Republican and Democratic officials.
Bankman-Fried was Among the Top Donors
SBF was amongst the biggest donors of these two parties. This was to keep the regulatory pressure at ease on the digital currency market.
Moreover, it has also been reported that the ex-CEO of FTX SBF has reportedly donated $1 billion to different political entities to impact the outcome of the 2024 Presidential elections in favor of the crypto market.
Multiple resources have already claimed the involvement of Sam Bankman-Fried in politics and how he had spent millions in funding various political events.
Mostly it was revealed by a renowned platform named “Open Secrets” that the former CEO of FTX was the sixth biggest spender in politics for the FY 2021-2022.
Open Secrets is the institute investigating from which resources and money are injected into politics. So, the credibility of its claims is above board.
The total amount SBF has offered to various politicians accounts for $39.8 million. Moreover, he has invested nearly $ 1 billion overall in politics.
Some legal experts have said that Congress must pass immediate provisions that any funding directly or indirectly linked to crypto should not be subjected to the political cause.
They also said that those politicians who have received the money from SBF should be thoroughly interrogated.
It seems that 2023 will be the year of a series of crypto-related regulations with a primary focus on making the market more protected from the investors’ point of view.