Sam Bankman-Fried will testify in court tomorrow

Sam Bankman-Fried, the CEO and Founder of FTX exchange, will be in court along with five other CEOs that represent cryptocurrency companies on December 8th. 

Bankman-Fried, Jeremy Allaire, the CEO of Circle, Brian Brooks, the CEO of Bitfury Group, Charles Cascarilla, the CEO of Paxos Trust Company, Denelle Dixon, the CEO and Executive Director of the Stellar Development Foundation, and Alesia Jeanne Haas the CEO of Coinbase Inc. will all be testifying in front of the House Financial Services Committee.

The hearing is titled, “ Digital Assets and the Future of Finance: Understanding the challenges and benefits of financial innovation in the USA,” and the CEOs will be fielding questions that revolve around that topic.

Regulation is coming

This isn’t the first time that a government body has summoned individuals representing cryptocurrency and digital asset companies to learn more about the nascent industry. The United States government is looking to regulate the cryptocurrency space and has held several hearings related to digital assets and blockchain technology where industry representatives and experts give lawmakers insight into the emerging sector.

Gary Gensler, the chairman of the Securities and Exchange Commission has made his stance on cryptocurrencies clear. Back in September, Gensler spoke to the Washington Post in a webinar titled “The Path Forward: Cryptocurrency with Gary Gensler.”

Throughout the webinar, Gensler was constructively critical of the cryptocurrency markets, saying that many of the companies with coins and tokens have not registered with the proper government agencies to do so and that the lack of regulation and enforcement Gensler sees in the industry will catalyze lawmakers into taking action.

But before lawmakers take action, they are actively learning more about the blockchain and digital asset space, its advantages, and its drawbacks.

Bankman-Fried and the U.S Government.

Law enforcement and regulation are coming, but I don’t expect it to be as severe as government officials are making it out to be. 

Why? Because Sam Bankman-Fried is the second-largest donor to the Biden presidential campaign. Although legal frameworks will be created and enforced, I doubt that Joe Biden’s good friend Sam Bankman-Fried would be negatively impacted by what’s to come.

Because Bankman-Fried has this financial relationship with the current president of the United States, I would expect Bankman-Fried to be very influential when it comes to how laws are created, what laws are created, and who gets affected.

As long as Joe Biden is the president of the United States and Sam Bankman-Fried is involved in the digital currency space, I would expect positive growth to take place in the cryptocurrency industry; because it would be a shame if the second largest contributor to Biden’s campaign was financially stunted due to policies that Biden approved, and therefore, I think that is unlikely to happen.

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