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Tom Emmer, a Republican lawmaker in the US, has accused Gary Gensler, Chairman of the US SEC (Securities and Exchange Commission), of being connected to the ongoing FTX crisis. Emmer noted that Gensler was helping the exchange exploit regulatory loopholes.

On November 10th, Tom Emmer, the lawmaker representing Minnesota’s Sixth District, spoke about the ongoing FTX saga on Twitter. He asserted that reports link the SEC chair to FTX and Sam Bankman-Fried.

The reports alleged that Gensler was assisting FTX to achieve regulatory dominance through legal loopholes. In the aftermath of FTX’s financial troubles, the congressman noted that he is looking into the situation thoroughly.

In addition, the House of Rep member slammed the SEC head for his statements in the media. Emmer argued that his team had uncovered the alleged collaboration between Bankman-Fried and Gensler.

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However, he noted that there were not many details from the reports submitted to his office. Before Emmer’s statement, Gensler appeared on CNBC’s Squawk Box recently.

However, the SEC had failed to mention the supposed meeting between SEC officials and Bankman-Fried on March 29th. In addition, Gensler did not confirm whether the SEC investigated the FTX exchange.

Meanwhile, Gensler attacked crypto companies for being untrustworthy to their investors. He accused them of using customers’ funds to invest in other crypto options.

“Most crypto firms are involved in insider trading and borrow funds using investors’ monies. Also, they fail to disclose such information to investors,” the SEC added.

Furthermore, Gensler compared the FTX crisis with the fall of the Terra ecosystem. He stated that the crypto world is interconnected and has few players at the center.

FTX CEO Tenders Public Apology 

In 2021, Bankman-Fried testified at Capitol Hill. He talked about the challenges crypto firms are facing due lack of regulatory clarity. Unfortunately, recent events have portrayed the crypto entrepreneur in a bad light.

Meanwhile, several crypto supporters have joined the conversation on the FTX saga. They have argued the need for regulatory bodies to regulate crypto exchanges.

For instance, Maxine Waters, US Rep for California’s 43rd District, called for federal oversight. She stated that regulations are needed to perfect consumer rights, citing the ongoing FTX insolvency.

However, Walters did not mention the alleged cooperation between Gensler and FTX. The ongoing dispute in FTX has produced tremendous turbulence across the cryptocurrency ecosystem.

It has also fueled confusion among several crypto users who want to know the status of their cash. On November 10th, the FTX CEO issued a formal apology on Twitter. He apologized for not giving adequate openness amid FTX’s liquidity crisis.

Surprisingly, reports reveal that the FTX exchange has unlocked withdrawals in some regions. However, only certain users were allowed to withdraw their earnings.

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George Ward

By George Ward

George Ward is a crypto journalist and market analyst at Herald Sheets, known for his engaging articles on the latest digital currency trends. With a background in finance and journalism, he presents complex topics accessibly. George holds a degree in Business and Finance from the University of Cambridge.