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Congressman Brad Sherman Says SBF Used Money to Influence Crypto Regulation

Congressman Brad Sherman Says SBF Used Money to Influence Crypto Regulation

In a statement following the FTX collapse, crypto cryptic Congressional representative and chair of the Subcommittee on Investor Protection and Capital Markets, Brad Sherman, claimed that the FTX crypto exchange had been aiding US Democrats to influence crypto regulations.

He insisted that it is essential for the regulators to gain a thorough understanding of the series of incidents and management shortcomings that contributed to this collapse.

He said,

“I fully support the efforts of U.S. regulators and law enforcement to investigate this situation and make sure those responsible are held accountable.”

He adds that a lot of focus has been placed on former FTX CEO Sam Bankman-Fried’s political contributions to Democrats, the majority of which were made during the primaries.

Ryan Salame, the co-CEO of the Bahamas-based FTX Digital Markets, allegedly gave more than $23 million to Republican candidates and campaigners in 2022, according to Brad Sherman.

Congressman Brad Sherman Says SBF Used Money to Influence Crypto Regulation

Brad Sherman Calls for Cryptocurrency Regulation

According to his statements, the collapse of one of the biggest cryptocurrency companies in the world is a significant illustration of the risks of digital assets as well as the “critical weaknesses” in the industry that has developed around them.

As a result, Brad Sherman reiterated his position on cryptocurrencies, stating that he has advocated for Congress and federal regulators to take anaggressive approach in tackling the many threats to society presented by cryptocurrencies for years.

“I believe it is important now more than ever that the SEC take decisive action to put an end to the regulatory grey area in which the crypto industry has operated,” according to Sherman.

SBF’s Electoral Donations

According to reports, the FTX founder has spent nearly $40 million primarily supporting Democrats during the current campaign cycle, which he did admit on November 8 on Twitter to being a “significant donor” to both the Democratic and Republican political sides ahead of the 2022 upcoming elections.

“Supporting constructive candidates across the aisle to prevent pandemics and bring a bipartisan climate to DC,” according to SBF. “And working with them to support permissionless finance,” he said.

After Democratic mega-donor George Soros, Ken Griffin, and cardboard box manufacturer Richard Uihlein, FTX Trading Ltd. has risen to become the fourth-largest source of funding for election campaigns, with donations also coming directly from FTX CEO Sam Bankman Fried (SBF). 

The report shows that the curly-haired billionaire donated a sum of $39,931,000 to both political parties. While $37,725,000 went to the Democrats, $201,000 was donated to the Republicans.

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