(The Center Square) – U.S. Sen. Debbie Stabenow, D-MI, received at the least $55,600 in donations this yr from employees of FTX, a cryptocurrency trade platform that declared chapter after allegedly misusing consumer funds.
Then, Stabenow, who as Agriculture Committee Chairwoman oversees the Commodities Future Trading Commission, a cryptocurrency regulator, sponsored laws to control cryptocurrency.
Michigan Capital Confidential first reported the story, citing Federal Election Commission data.
Coindesk reported that FTX founder Sam Bankman-Fried constantly met with regulators and lawmakers and pushed for crypto regulation, together with lobbying for the Digital Commodities Consumer Protection Act, Stabenow’s bill. The bill seeks to provide the CFTC extra authority to control digital commodities like FTX.
Bankman-Fried tweeted on Oct. 18, 2022, “I’m optimistic that the Stabenow-Boozman’s bill will present buyer safety on centralized crypto exchanges with out endangering the existence of software program, blockchains, validators, DeFi, and so forth. If I had been satisfied I used to be improper about that, I might not assist it.”
Bankman-Fried backed Stabenow’s bill and paid bill cosponsor Sen. John Boozman, R-Arkansas, $8,700; cosponsor Sen. Kirsten Gillibrand, D-N.Y., $5,800, and cosponsor Sen. Cory Booker, D-N.J,. $5,700, based on FEC data.
At one level, FTX claimed to be price $32 billion before its collapse.
On Tuesday, Bankman-Fried was charged with eight felony counts: conspiracy to commit wire fraud and securities fraud, particular person prices of securities fraud and wire fraud, cash laundering, and conspiracy to keep away from marketing campaign finance laws.
A message left Thursday searching for remark from Stabenow’s workplace hasn’t been returned. It’s unclear if Stabenow nonetheless helps the bill.
In a Nov. 10 statement after FTX collapsed, Boozman doubled down on the necessity for the laws.
“Chairwoman Stabenow and I stay dedicated to advancing a remaining model of the DCCPA that creates a regulatory framework that permits for worldwide cooperation and provides shoppers larger confidence that their investments are secure,” he mentioned.
At a Sept. 15 listening to, Stabenow nonetheless backed the bill to implement “guardrails” to guard shoppers.
“As its identify suggests, our bill is concentrated on client safety,” Stabenow said. “It would require that platforms segregate and safeguard buyer property, maintain adequate capital and abide by rigorous cybersecurity requirements. It will remove most of the conflicts of curiosity on this market. And it is going to mandate that platforms converse honestly concerning the dangers of buying and selling digital commodities and do not interact in deceptive promoting.”
The crypto market has misplaced $2 trillion in simply over a yr, based on CNBC.