Congressman Sherman accuses ‘billionaire crypto bros’ of impeding crypto-regulations

U.S Congressman Brad Sherman has taken aim at crypto’s rich and elite, accusing them of impeding necessary legislations required to regulate the industry.

The representative of California’s 30th Congressional District has been known for his position against crypto. In fact, he has frequently criticized those associated with the crypto-sector. His latest comments were part of a recent statement he made to address the collapse of FTX, the Bahamas-based crypto-exchange.

“To date, efforts by billionaire crypto bros to deter meaningful legislation by flooding Washington with millions of dollars in campaign contributions and lobbying spending have been effective.”

$70 million spent by FTX on political donations

The “billionaire crypto bros” the Congressman was referring to were FTX executives CEO Sam Bankman-Fried and Co-CEO Ryan Salame. In fact, data from Opensecrets.org revealed that during the 2022 election cycle, FTX spent more than $70 million on political donations, campaign contributions, and lobbying efforts.

Sam Bankman-Fried has personally donated almost $40 million to pro-crypto candidates in order to push favorable legislations for the industry. The bulk of this money has gone towards Democratic candidates. Bankman-Fried’s contributions have earned him the #6 spot on the Federal Contributors list.

Brad Sherman shed light on the donations made by Ryan Salame as well. According to the Federal Election Commission website, Salame has donated over $23 million to Republican candidates in 2022.

Sherman now intends to counter the damage dealt by FTX’s collapse by working towards regulations that will prevent such events in the future. He will collaborate with fellow Congressmen to explore federal legislation for the industry.

FTX’s bankruptcy renews scrutiny of the industry

Falling crypto-prices are not the only consequence of FTX’s downfall. Lawmakers and regulators have taken this opportunity to call out the lack of regulations in the industry.

Regulators including the Securities and Exchange Commission, Commodity Futures Trading Commission, and the Federal Trade Commission, have already announced investigations into FTX’s operations. It is very likely that the scrutiny will not stop there.

Senator Elizabeth Warren was among the first lawmakers to comment on FTX’s meltdown. The senator called for “aggressive enforcement” by the SEC in the interest of consumer protection and financial stability.