FTX US Resigns From Prominent Crypto Trade Association
- SBF claimed FTX US was not affected by the liquidity crisis.
- The Crypto Council for Innovation helps advocate for the rights of its members.
- Bankman-Fried, the CEO of FTX, built a reputation in Washington for courting politicians and advocating for crypto regulation.
FTX US has reportedly resigned from the prominent DC-based crypto group, the Crypto Council for Innovation, which advocates on behalf of the cryptocurrency sector. FTX US, Coinbase, Gemini, and the venture capital company Andreessen Horowitz were all members of the group.
However, it appears the latest events involving FTX have affected the participation of its US subsidiary.
Before FTX’s bankruptcy became public earlier this week, the platform’s CEO, Sam Bankman-Fried, actively lobbied Washington politicians.
The Crypto Council for Innovation’s CEO, Sheila Warren, informed sources that the council had accepted FTX US’ departure as an associate member of the organization. A statement from Warren read,
We remain committed to working towards building regulation that protects users and safeguards innovation, in order to bring about real change. The news this week has been shocking, but we’ve also seen the community come together. We have an historic opportunity to get the policies right and the Crypto Council will continue to work to achieve that.
Sam Bankman-Fried claimed that FTX US had not been financially harmed by the liquidity problems the international exchange was experiencing. The U.S. exchange, however, stated on its website that trading might stop in a few days and advised users to close out any positions if they so desired.
SBF’s Costly Relationship with Washington DC
Sam Bankman-Fried built a reputation for scouting around Washington, D.C., pitching cryptocurrencies to solve the country’s financial woes. However, he appeared to fit in perfectly. SBF made special appearances at three significant Washington events in the course of a few days last month, all of which attracted senators, notable bankers, and financial experts. His upbeat internet campaign initially met with skepticism and some mild antagonism, but in recent months, his tenacity had begun to pay off.
SBF remarkably gave speeches at conferences, testified on Capitol Hill, supported crypto legislation, and, perhaps most significantly, rose to the position of one of the biggest contributors to American political campaigns.
The friendly crypto developer who declared his desire for swift regulation of his sector had emerged as the top advocate for cryptocurrencies in Washington. But his fame and status as a billionaire vanished on Tuesday as his company ran into a liquidity crisis. His collapse has become a talking point in the crypto community. Other developers believe SBF’s association with Washington contributed to his decline.