the arrest of ex FTX CEO Sam Bankman-Fried (SBF) by the Bahamian authorities served as a signal for cryptocurrency advocates to reignite discussions about the dangers of cryptocurrencies. While some political leaders blame the crypto ecosystem for SBF frauds, others see no point in blaming an entire industry for the action of one man.
During an FTX hearing in front of the House Financial Services Committee, Congressman Brad Sherman saw no difference between SBF and an industry that once It had a market capitalization of $2 trillion.As the fixed:
โMy fear is that we will see Sam Bankman-Fried as a big snake in a crypto Garden of Eden. The fact is that cryptocurrencies are a garden of snakes."
He supported this statement by explaining how cryptocurrencies, like non-fungible tokens (NFTs)they are bought with the hope of selling them at a higher price.
He also highlighted how entrepreneurs like โSam Bankman-Fried would tell you there's a huge market for bankruptcy court evasionโ and noted how cryptocurrencies help bad actors' tax evasion efforts.
On the other hand, Congressman Tom Emmer distanced the consequences of FTX from the cryptocurrency institution while speech at the US House of Representatives Committee on Financial Services. Instead, Emmer revealed how the immutable nature of blockchain technology helped the crypto community discover the FXT token (FTT) discrepancies, which ultimately led to the arrest of SBF.
Information stored on the public blockchain will further help law enforcement dig deeper into the nuances of potential crimes. He added:
โI encourage my colleagues to understand the Sam Bankman-Fried scam for what it is: a centralization failure, a business ethics failure and a crime. It's not a glitch in technology."
As detractors try to link SBF's actions to the idea of โโcrypto and blockchain, the case for decentralization is getting stronger. Blockchain-based public crypto ecosystems not only enable traceability, but can also help authorities with anti-money laundering initiatives.
Related: US Senator: "There Is No Reason Why" Cryptocurrencies Should Exist
Despite the decade-long federal resistance towards cryptocurrencies, support for US crypto senators has evidently become stronger. Pro-crypto Senator Cynthia Lummis believes in Bitcoin (BTC) as a viable addition to 401(k) retirement plans, revealing his contempt for the prolonged but temporary bear market:
โI feel very comfortable making sure that people can include Bitcoin in their retirement funds because it is different from other cryptocurrencies.โ
Lummis is betting on the scarcity of Bitcoin, which according to "a personal belief", will help increase the value of the asset over time.
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