December 8, 2023

US Senators: FTX collapse spurred development of digital consumer law

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US Senators: FTX collapse spurred development of digital consumer law

The US Congress has intensified work on the DCCPA bill amid the receipt of shocking information for the cryptocurrency community about the possible consequences of the collapse of the FTX exchange.

US Senators Debbie Stabenowand John Boozman (Debbie Stabenow) announced their intention to quickly complete the final version of the draft Digital Consumer Protection Act of 2022 (DCCPA) and submit it for approval by the Senate.

 “The events that happened this weekconfirm the clear need for increased federal oversight of the digital asset industry. We will expedite the finalization of the DCCPA to create a regulatory framework that ensures the security of consumers' investments,” Senator Boozman announced.

The development of the DCCPA is associated with the chaptercryptocurrency exchange FTX by Sam Bankman-Fried, who attended several Senate hearings and “strongly supported” the bill.

“The bill proposes a set of standards,which we as an industry could put in place to ensure transparency in operations and protect customers. Treat it as a guide to industry norms and try to reach consensus,” Bankman-Fried said in an address to the crypto community.

DCCPA was officially introduced in the US Congress 3August 2022. However, there are no details yet regarding exactly when the bill will be submitted for consideration by the US parliament.

According to
news agency Reuters, crisisliquidity of the FTX exchange may be associated with the CEO’s intention to support his other company, Alameda Research. It is believed that Sam Bankman-Fried transferred about $4 billion, including customer deposits, to Alameda on the eve of the crisis.