Crypto Market Has Moved On From Sam Bankman-Fried. Crackdowns Are Still Coming.

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Bitcoin is brushing off the scandal but regulators say the industry remains rife with dodgy practices.

A guilty verdict for FTX founder Sam Bankman-Fried closes a chapter on the industry’s biggest fraud, but it may only heighten pressure on Washington to ensure it doesn’t happen again.

The trial ended without major revelations that would affect crypto prices. Indeed, Bitcoin has rebounded sharply this year, more than doubling to about $34,900. Its price has been bolstered by interest in the likely launch of a Bitcoin exchange-traded fund, which some analysts believe will lure billions of dollars from institutions sitting on the sidelines. The value of the crypto market sank below $800 billion in January, according to CoinMarketCap, but now trades above $1.2 trillion.

That’s dismayed the crypto industry, which has argued Congress needs to pass bills to create a clear path to operating their businesses legally. Passing comprehensive legislation in Washington is proving tough across the board. But the mood in Washington has shifted sharply from fostering the industry’s growth to cracking down on it.

Lawmakers continue to take in campaign contributions from the industry, which is lobbying hard on a variety of fronts. Yet some of the most crypto-friendly lawmakers are now urging regulators to crack down on purported bad actors. The recent terrorist attack by Hamas, which was reportedly funded in part with crypto, has added fuel to the fire.

Lummis and other lawmakers are still pushing bills that the industry supports. But they haven’t been able to gain the foothold needed to curb the powers of regulators like Gensler.

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