Congressman Tom Emmer: "FTX collapse is a consequence of the inept regulation of the SEC"

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US Congressman Tom Emmer said that the collapse of the FTX cryptocurrency exchange is not a failure of the crypto industry, but of centralized finance and the unsuccessful policies of the SEC.

Republican Tom Emmer mentionedrumors that allegedly in March the US Securities and Exchange Commission (SEC) had a conversation with the head of FTX, Sam Bankman-Fried, about providing FTX with special legal treatment. Emmer added that Bankman-Fried also pushed for special treatment legislation to be passed through Congress.

The congressman said he was looking into the issue witha group of other politicians. They intend to find out how it got to the point where so many people lost millions of their savings. This is exactly what the regulator should take care of, the congressman emphasized. In his opinion, the SEC is more willing to go after good participants in the crypto space, while working behind the scenes with other industry participants.

“We need to get to the bottom of this and understandwhy Gary Gensler and the SEC didn't do their job. Gensler wasn't around to handle the bankruptcy of crypto lenders Celsius Network and Voyager Digital. He did nothing with Terra when the project failed in May. Gensler was away when something had to be done about FTX. It appears the SEC has failed to deal with the bad guys, which is exactly what it should be doing,” Emmer said.

Tom Emmer isn't the only one criticizing the SECfor biased regulation of cryptocurrencies. For example, Shark Tank star and owner of the Dallas Mavericks basketball club Mark Cuban accused the agency of coercively regulating the crypto industry while there are no clear regulations for cryptocurrencies. Ripple lawyer Stuart Alderoty also believes that the SEC is seeking to seize control of the entire cryptocurrency market.