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Washington Needs a Crypto Rethink

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Washington Needs a Crypto Rethink


Sam Bankman-Fried, the previous poster boy for cryptocurrency, reportedly has agreed to be extradited from the Bahamas, to face fraud expenses that would preserve him confined for many years. The tremors from the collapse of FTX, his crypto-trading platform, proceed to reverberate round Washington. At a listening to final Wednesday, Sherrod Brown, the Democratic head of the Senate Banking Committee, mentioned he hoped that Bankman-Fried would “quickly be dropped at justice,” and added that he “owes the American folks an evidence.”

The thirty-year-old entrepreneur definitely owes FTX’s bereft clients a fuller account than the pleas of ignorance he supplied up earlier than being arrested. However Bankman-Fried isn’t the one one with explaining to do. There are additionally the politicians from each main events who accepted his marketing campaign donations and advocated for laws he favored. In response to Damian Williams, the U.S. Legal professional for the Southern District of New York, the political donations that Bankman-Fried made truly got here from cash that he diverted from clients. Though plenty of the recipients have now returned Bankman-Fried’s tainted cash, or donated it to charity, few, if any, have repudiated the strategy to crypto regulation that he was pushing.

“FTX adopted the usual playbook of influencing Washington, and that’s shopping for affect on a bipartisan foundation,” Dennis Kelleher, the president of the not-for-profit group Higher Markets, advised me, final Friday. A centerpiece of Bankman-Fried’s lobbying efforts was the Digital Commodities Shopper Safety Act, a invoice unveiled in August by Debbie Stabenow, a Michigan Democrat who’s the chair of the Senate Agriculture Committee, and by John Boozman, an Arkansas Republican who’s the committee’s rating member. The co-sponsors of the invoice embrace the Democrat Cory Booker and the Republican John Thune, who additionally serve on the Agriculture Committee. In response to press reviews, Bankman-Fried, or different executives at FTX, gave marketing campaign contributions to Stabenow, Boozman, Booker, and different members of the committee. (He additionally contributed to the Republican Cynthia Lummis and the Democrat Kirsten Gillibrand, who co-sponsored one other crypto invoice launched earlier this yr.)

What has farming received to do with crypto? Beneath this nation’s Balkanized system of economic regulation, the Securities and Change Fee regulates monetary securities, equivalent to shares and bonds.The Commodity Futures Buying and selling Fee oversees commodity futures, equivalent to contracts for corn and grain and pork bellies, and thus falls underneath the purview of the Senate and Home committees on agriculture. Gary Gensler, the pinnacle of the S.E.C., has made clear that he regards the overwhelming majority of crypto tokens as securities, which suggests that the S.E.C. would regulate them. If corporations like FTX have been pressured to register with the S.E.C., they must make in depth public disclosures, for which they might be legally liable, and, relying on precisely how they register, they might additionally need to adjust to many different company necessities regarding conflicts of curiosity, defending buyer accounts, and threat compliance. The S.E.C. has a protracted historical past of regulating retail markets and retail-brokerage corporations.

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However, relatively than inserting the S.E.C. accountable for supervising the crypto trade, each of the payments popping out of the Senate Agriculture Committee “would transfer in the wrong way,” Hilary J. Allen, a regulation professor at American College, mentioned, testifying in final week’s listening to of the Senate Banking Committee. “Each create regimes for crypto belongings to be regulated by the C.F.T.C.” Critics say that that is probably a giant downside. “The C.F.T.C. is extensively regarded to be the crypto trade’s most well-liked regulator,” Allen went on. “The C.F.T.C. is a a lot smaller company with a a lot smaller funds than the S.E.C., it has no statutory investor-protection mandate, and it has restricted expertise regulating retail-dominated markets.” Kelleher advised me that handing over main regulatory authority to the C.F.T.C. can be a large win for the crypto foyer. “The C.F.T.C. has been chronically underfunded, and it’s simply penetrated and captured by an trade it’s supposed to control,” he mentioned. “FTX and different crypto corporations needed the weakest potential regulator, and that’s the C.F.T.C.”

Supporters of the 2 crypto payments say their critics are mischaracterizing laws that would offer for efficient twin oversight of the crypto trade, with the C.F.T.C. regulating crypto tokens which can be classed as commodities and the S.E.C. regulating crypto tokens which can be classed as securities. “I’ve not been shy about my encouragement of payments that ponder shared duty for the C.F.T.C. and the Securities and Change Fee,” Rostin Behnam, the chair of the C.F.T.C., advised a listening to of the Senate Agriculture Committee, earlier this month. Behnam, who beforehand served as a senior counsel to Senator Stabenow, additionally mentioned he had been inspired by the bipartisan help for a regulatory strategy that will “impart transparency, accountability, stability, buyer protections, and oversight throughout digital belongings.”

Nevertheless, questions have additionally been raised concerning the relationship between the management of the C.F.T.C. and the crypto trade. At a New York College Faculty of Regulation occasion in September, Behnam mentioned, “Bitcoin would possibly double in worth if there’s a C.F.T.C.-regulated market.” FTX employed plenty of former company officers and lobbied the company aggressively. In his latest congressional testimony, Behnam confirmed that he and his workers met Bankman-Fried ten instances in the course of the previous fourteen months, and likewise spoke on the cellphone and exchanged messages with the now disgraced entrepreneur. He mentioned that these conferences involved a request from FTX to permit certainly one of its affiliated firms—LedgerX, a digital platform on which traders commerce derivatives tied to cryptocurrencies—to settle trades with out the involvement of every other monetary intermediaries. There have been “sturdy emotions” concerning the firm’s software, Behnam mentioned, noting that he approached it by being “clear and open” with FTX. The LedgerX request hadn’t been permitted by the point FTX collapsed, and Behnam identified that the derivatives platform, which was supervised by the C.F.T.C., survived the blowup unscathed, with its clients’ funds intact. “That is regulation working,” he insisted.

On the similar listening to, Stabenow mentioned that passage of the laws she and Boozman proposed might have prevented FTX’s collapse, an assertion that Kelleher dismissed as unfounded. Different defenders of crypto nonetheless make the argument that subjecting the trade to intrusive regulation would inhibit its skill to innovate, and hurt the financial system. That’s a deeply doubtful declare. Though the blockchain expertise that underpins the crypto trade could have functions that would conceivably develop monetary entry and enhance financial progress, that largely hasn’t occurred but, at the very least in the US. Certainly, if this yr’s crises within the crypto sector have indicated something, it’s that a lot of what passes for crypto “innovation” entails encouraging folks to invest, usually with borrowed cash, on digital belongings which have little or no intrinsic value and may swing wildly in market worth. “Crypto has demonstrated little utility when it comes to real-world capital formation or monetary inclusion . . . and so the general public doesn’t want the trade to prosper,” Professor Allen mentioned, in her testimony to the Senate Banking Committee. “What the general public truly wants is safety—particular person traders want safety from crypto frauds, and our broader monetary system additionally wants safety from crypto’s booms and busts.”



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Commanders-Eagles Stats & Snaps

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Commanders-Eagles Stats & Snaps


“Washington-Philadelphia Monday Stats Pack” is presented by BDO by the Numbers. People who know, know BDO.

A list of stats and notes from the Washington Commanders’ 36-33 win against Philadelphia, presented by BDO by the Numbers, as compiled by Washington Commanders Public Relations.



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Denzel Washington Receives Minister’s License, Gets Baptized

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Denzel Washington Receives Minister’s License, Gets Baptized


Denzel Washington can now add ministry to his long resume.

On Saturday, the Gladiator II star was baptized, receiving a certificate of baptism, as well as a minister’s license, meaning that he can later get ordained. The event took place at the Kelly Temple Church of God in Christ located in New York City’s Harlem, per Today. First Jurisdiction Church of God in Christ Eastern New York livestreamed the service on Facebook.

“In one week I turn 70. It took a while, but I’m here,” the prolific actor said. Washington also thanked his wife, Pauletta Washington.

The two-time Academy Award winner has been open about his faith before, telling Esquire last month that while talk of religion in Hollywood is rare, he is unflinching in his resolve to share his beliefs and experience.

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“I’m unafraid. I don’t care what anyone thinks. See, talking about the fear part of it—you can’t talk like that and win Oscars. You can’t talk like that and party. You can’t say that in this town,” he wrote in an essay relayed by the magazine.

He continued at the time, “It’s not fashionable. It’s not sexy. But that doesn’t mean people in Hollywood don’t believe. There’s no such thing called Hollywood anyway. What does that even mean? That to me means a street called Hollywood Boulevard. It’s not like we all meet somewhere and discuss what we believe. So I don’t know how many other actors have faith. I didn’t do no poll. How would I find that out? I mean, there’s no Church Actor Meetings I’ve been to.”

Upcoming on Washington’s docket is Spike Lee’s Apple Original Films/A24 project Highest 2 Lowest, alongside A$AP Rocky & Ice Spice, as well as Black Panther 3, his involvement in which he accidentally let slip.



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Commanders Trail Eagles 21-14 at Halftime of Week 16

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Commanders Trail Eagles 21-14 at Halftime of Week 16


LANDOVER, Md. — The Washington Commanders are hosting the Philadelphia Eagles looking to exact a little revenge for their Week 11 loss to the NFC East Division rival.

Facing the Eagles on their home turf this time around, they are determined not just to win the game but also to show improvement following a string of fourth-quarter collapses.

Starting the game on the field, the Commanders’ offense looked to get the tone set early and did, but unfortunately, it wasn’t the tone they wanted.

Washington Commanders quarterback Jayden Daniels.

Dec 22, 2024; Landover, Maryland, USA; Washington Commanders quarterback Jayden Daniels (5) passes the ball during warmup prior to the game against the Philadelphia Eagles at Northwest Stadium. Mandatory Credit: Geoff Burke-Imagn Images / Geoff Burke-Imagn Images

After consecutive incomplete passes from quarterback Jayden Daniels, he was able to find running back Brian Robinson Jr. for a nine-yard gain. On the fourth-and-one attempt, Robinson was stonewalled, turning the ball over to Philadelphia in Washington territory to start its own first drive of the game.

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Eight plays later, Eagles running back Saquon Barkley punched the ball in from two yards out to open up the scoring and led to a 7-0 deficit for the Commanders less than four minutes into the contest.

The second Washington possession started with a bang after receiver Luke McCaffrey returned the kickoff 47 yards into Philadelphia territory, but it was short-lived because Robinson fumbled the first down run play, turning the ball right back over.

Eight plays later, the Eagles scored again, this time on a pass from quarterback Kenny Pickett to receiver A.J. Brown. During the second Philadelphia scoring drive, Jalen Hurts was taken out of the game to be evaluated for a concussion and eventually taken into the locker room for further testing.

The third possession for Washington didn’t go much better, resulting in a three-and-out and a punt. Needing to manufacture some momentum the Commanders’ defense decided to take matters into their own hands leading to an interception by linebacker Frankie Luvu that shifted momentum and put the offense back on the field at the Eagles’ 25-yard line.

Four plays later Washington got on the board for the first time on a six-yard pass from Daniels to receiver Jamison Crowder making the lead 14-7 in favor of Philadelphia – all still in the first quarter.

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The momentum was short-lived, however. Onn the Eagles’ second play of the subsequent drive, Barkley took off downfield for a 68-yard touchdown ru, pushingd the lead back out to 14 at 21-,- still in the first quarter.

That would be the final score at the end of the first quarter, but it wasn’t the final dose of heartbreak for Washington.

Starting the second quarter with the ball, the Commanders got all the way down to the Philadelphia 10-yard line before Robinson fumbled for the second time in the game, again losing possession of the ball.

Fortunately, that turnover didn’t turn into points. Even more fortunately, Daniels connected with star receiver Terry McLaurin on a 32-yard fade route into the end zone on the very next possession, trimming the lead to 21-14 with just under seven minutes left in the half.

With just under two minutes left in the half and two timeouts in his back pocket, Daniels had his offense on the field looking to tie the game, but on the first play of the drive, the quarterback sailed his pass attempt to receiver Luke McCaffrey and was intercepted by Eagles safety C.J. Gardner-Johnson.

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The interception gave Philadelphia the ball back with time and two timeouts left to try and get more points before halftime, knowing it would also get the ball back to start the second half.

Fortunately, the Commanders’ defense kept that turnover from hurting them further, and we entered the halftime break with the Eagles leading 21-14.

Stick with CommanderGameday and the Locked On Commanders podcast for more FREE coverage of the Washington Commanders throughout the 2024 season.

• Commanders Gearing Up to Take Down ‘Hottest Team’ in the NFL in Week 16

• Commanders’ Josh Harris Makes Statement on Stadium Future

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• Commanders Coach Reveals How Jayden Daniels Has Grown

• Commanders on Pace for Historic Season of Fourth Quarter Scoring



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