Tom Emmer believes the SEC is responsible for the collapse of FTX

The bankruptcy of the FTX platform and the loss of funds from its clients is not at all a failure of the entire cryptocurrency industry. This is a consequence of the unsuccessful policy of the Securities and Exchange Commission, according to US Congressman Tom Emmer said.

According to the Republican, there is information that allegedly in early spring, the SEC held a meeting with the head of FTX, Sam Bankman-Fried, where the possibility of granting the exchange a special legal status was discussed. The politician also noted that Bankman-Fried insisted that the law on special treatment pass through Congress.

The congressman said that now he and other politicians are trying to find out exactly how many users lost their savings. In his opinion, the regulator prefers to pursue law-abiding participants in the crypto industry, while tacitly cooperating with other market players.

“We need to get to the bottom of why Gary Gensler and the SEC didn't do their job. Gensler was not around to deal with the bankruptcy of cryptocurrency lenders Celsius Network and Voyager Digital. He did nothing with Terra when the project failed in May. Gensler was absent when something had to be done about FTX. It looks like the SEC has failed to deal with the bad guys, which is exactly what it should be doing,” Emmer said.

And a member of the US Senate Banking Committee, Elizabeth Warren, in her column for one of the American media, wrote that the crypto industry is moving on a path of financial innovation that begins with "exciting rewards" and ends with "crushing losses." In her opinion, the incident with FTX is a “wake-up call” for the authorities.

“Proponents say cryptocurrencies have great potential to make the financial system more efficient and inclusive. May be. But we've heard this story before. […] During the crash of 2008 and all previous financial crises, such statements proved to be dangerously delusional. Cryptocurrency is no exception,” Warren wrote.

However, users criticized the senator. One of them wrote that Warren was trying to intimidate people, and the title of her article “Take control of the crypto industry or it will destroy the economy” indicates the incompetence of a member of the US Senate Banking Committee.

Chainalysis analysts are sure that the cryptocurrency industry has already experienced crises more serious than the collapse of FTX. For example, about 8 years ago, the Mt.Gox platform that went bankrupt, occupied a significantly larger market share.

Chainalysis head of research Eric Jardine said that Mt.Gox accounted for about 46% of the inflow of funds from the total volume for all exchanges, and the share of FTX before the crash was no more than 13%. At the same time, despite serious shocks after the collapse of Mt.Gox, activity in the crypto industry recovered and even grew a year later. And in the case of FTX, the market recovery process should take even less time.