The conviction of former cryptocurrency mogul Sam Bankman-Fried has led to renewed calls for regulation of the industry, but the U.S. Congress has shown no interest in taking action.
Last year, when cryptocurrencies collapsed and many companies went out of business, Congress considered a variety of ways to regulate the industry. However, most of these efforts came to nothing and the regulatory momentum has stalled since the arrest of Bankman Fried.
Bankman Fried was the founder of the now-defunct FTX exchange and was convicted of stealing at least $10 billion from customers and investors. His arrest and conviction raised concerns about the lack of regulation in the cryptocurrency industry.
In the absence of Congress, federal regulators such as the U.S. Securities and Exchange Commission (SEC) have begun to step in and take enforcement action against the industry. The SEC filed lawsuits against two of the largest cryptocurrency exchanges, Coinbase and Binance.
The SEC also issued a subpoena to PayPal regarding the PayPal Dollar stablecoin.
However, consumer advocates and some members of Congress are skeptical about the need for new rules. They argue that existing laws and regulations are sufficient to address the problems in the cryptocurrency industry.
On the other hand, cryptocurrency advocates argue that the FTX collapse was an isolated incident and that the industry should not be regulated as a result.
It is unclear when or if Congress will act to regulate the cryptocurrency industry. In the meantime, investors and consumers are advised to remain cautious when dealing with cryptocurrencies.