FTX and a number of other organizations have been pouring billions of dollars into Washington in an effort to influence legislation in their favor.
After several months have passed since Terra's demise, the industry is still reeling from the collapse of FTX.

Legislators are in a frenzy as a result of the FTX crisis because they feel that the entire debacle might have been averted if a suitable framework had been introduced.

Congressman Brad Sherman of the United States blames the cryptocurrency sector's rich founders for slowing down the passage of necessary laws because of their influence in the business. In his press release, he placed the blame for FTX's failure on the demography and asked industry regulators to grasp the opportunity to implement significant reforms as soon as possible.

Sherman, who is well-known for his anti-crypto beliefs, recently remarked that he has been bringing attention to the risks that digital assets pose to investors in the United States. In addition, he mentioned that the implosion of FTX is a "dramatic representation of both the inherent hazards of digital assets and the key vulnerabilities in the ecosystem that has grown up around them."

According to Sherman, "to this far, the efforts of wealthy crypto dudes to dissuade real legislation by flooding Washington with millions of dollars in political contributions and lobbying spending have been successful." I am of the opinion that it is more vital than it has ever been for the SEC to take immediate action in order to bring an end to the regulatory gray area in which the cryptocurrency business has been operating.

The Central Bank Digital Currency Study Act of 2021, the Stablecoin Transparency Act, the Cryptocurrency Tax Clarity Act, and the Digital Commodities Consumer Protection Act of 2021 are some of the proposed pieces of legislation for the sector that are now sitting on the tables of regulators. The customary legislative roadblocks have slowed down the advancement of a number of measures, including those that have the support of both political parties and others that are the result of a collaborative effort between several regulatory bodies.

The executive order that was handed down by President Joe Biden in March 2022 was the final comprehensive piece of legislation pertaining to the business. The order provided some amount of investor protection by imposing new rules on the taxation of cryptocurrencies, but in light of the events of the previous week, sector participants are preparing themselves for further regulations.

The rich brothers who are causing the legislative process to grind to a halt.
It seemed as though Sherman was taking aim at FTX CEO Sam Bankman-Fried with his comments. Bankman-Fried has a well-deserved reputation for giving substantial donations to various political parties. According to newly released information, Bankman-Fried has already contributed $39 million to the political campaigns of both the Democratic and Republican parties, and the company is considering making additional financial contributions during the presidential election.

Insider reports that Ryan Salame, the co-founder of FTX, has contributed well over $13 million to the political campaigns of Republicans. The figure was reported by the publication Insider.