The recently elected Republican lawmaker Tom Emmer has alleged Securities and Exchange Commission (SEC) Chair Gary Gensler had been helping FTX CEO Sam Bankman Fried (SBF) to gain a regulatory monopoly through the crypto firm.
Emmer, who represents Minnesota’s 6th district in the United States House of Representatives, also criticized Gensler for “run[ning] to the media” amid FTX’s liquidity crisis that sent shockwaves through the crypto market.
According to the Republican lawmaker, his team was looking into the SEC chair’s alleged collaboration with FTX and its CEO Sam Bankman-fried. However, the team only cited reports presented to Emmer’s office as evidence without providing details.
Tom Emmer also tweeted claiming Gensler was helping FTX and SBF work on legal loopholes to obtain a regulatory monopoly. Just before Emmer’s tweet went viral, Gensler spoke on CNBC’s Squawk Box, not disputing records that SBF met with SEC officials on March 29. However, he also said that many similar meetings emphasized the same message to prominent crypto players – “noncompliance is not gonna work”.
Gensler didn’t confirm reports that the regulatory body was investigating the FTX US exchange. Citing the collapse of Terra he said that when you mix together a bunch of customer money, non-disclosure, and leverage borrowing against it – and inside these companies trading – investors get hurt.
As crypto is an interconnected world with a few concentrated in the middle, when markets crash down on them, a lot of customers lose money. Well, the crypto industry is in utter chaos. While FTX is witnessing a liquidity crunch, Binance CEO CZ tried to pull FTX from its crisis with the acquisition but turned its back soon after.
After Binance backed off from acquiring FTX, Tron founder Justin Sun offered a helping hand to FTX, “putting together a solution” with FTX.