Bankman-Fried's trial exposed crypto fraud but Congress has not been eager to regulate the industry

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The conviction of former cryptocurrency mogul Sam Bankman-Fried for stealing at least $10 billion from customers and investors is the latest black mark for the crypto industry. But in Washington, there seems to be little to no interest in pushing through regulation.

FILE - A man passes by a screen showing the prices of bitcoin at a virtual currency exchange office in Seoul, South Korea, Tuesday, Jan. 16, 2018. When cryptocurrencies collapsed and companies failed last year, Congress considered multiple approaches for how to regulate cryptocurrencies in the future. However, most of those efforts have gone nowhere, especially in this chaotic year that has been dominated by geopolitical tensions, inflation and the upcoming 2024 election.

Without Congress, federal regulators like the Securities and Exchange Commission have stepped in to take their own enforcement actions against the industry, including theSam Bankman-Fried must now convince a jury that the former crypto king was not a crookAnd most recently PayPal received a subpoena from the SEC related to its PayPal USD stablecoin, the company said inWednesday. “The subpoena requests the production of documents,” the company said.

Brown has been highly skeptical of cryptocurrencies as a concept and he’s been generally reluctant to put Congress’ blessing on them through regulation. He’s heldover cryptocurrency issues, ranging from the negative impact on consumers to use of the currencies in funding illicit activities, but has not advanced any legislation out of his committee.

In the House, a bill that would put regulatory guardrails around stablecoins — cryptocurrencies that are supposed to be backed by hard assets like the U.S. dollar — passed out of the House Financial Services Committee this summer. But that bill has gotten zero interest from the White House and the Senate.on government oversight of cryptocurrency that urges the Federal Reserve to explore whether the central bank should jump in and create its own digital currency.

 

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