FTX’s sale to Binance kills Bankman-Fried’s bill
The priority measure of FTX CEO Sam Bankman-Fried is unlikely to pass before the Congress session ends in January since FTX sold to Binance during its token crash.
This year, FTX CEO Sam Bankman-Fried put millions of dollars into political campaigns and lobbying, establishing himself as the most prominent crypto voice in the Washington government.
However, industry sources called Bankman-priority Fried’s measure “dead” in Washington, or at least on life support, within minutes after the exchange CEO announced the startling decision to sell his firm to Binance on Election Day.
Bankman-Fried was the most prominent industry champion for a measure prepared by Sens. Debbie Stabenow (D-Michigan) and John Boozman (R-Arkansas). The August introduction of the Digital Commodities Consumer Protection Act would offer the Commodities Futures Trading Commission expanded regulatory jurisdiction over digital commodity exchanges and spot markets.
Proponents of decentralized finance criticized the measure and Bankman-Fried himself passionately, claiming that the legislation will harm their efforts. The scrutiny reached a fever pitch when a new draught version of the law was made public, forcing DeFi activists’ private opposition to emerge in the open. Advocates for the measure believed that it may be attached to a bigger end-of-year funding bill in order to expedite its passage.
Simultaneously, FTX started to deteriorate. Binance, a competitor exchange, stated on Sunday that it will sell a significant quantity of FTX’s native exchange token, FTT. The change caused the FTT token’s value to plummet from $22 on Sunday to $14.59 on Tuesday morning. It caused the whole market to decline. FTX refused to comment.