Senators Elizabeth Warren (D) and Chuck Grassley (R) have officially requested information from Rostin Behnam, chair of the Commodity Futures Trading Commission (CFTC), by demanding logs of all communications—including emails, phone calls, and meetings. The deadline for providing a comprehensive list of papers and correspondence is April 29.
The focus of this demand is Sam Bankman-Fried (SBF), the former CEO of the collapsed crypto exchange FTX. FTX went bankrupt in November 2022, which is why the senators are requesting a detailed log of all communications between Behnam and SBF during Behnam’s tenure as chairman.
This probe has shed light on the growing concern among American politicians regarding the regulation and oversight of cryptocurrency markets. It emphasizes the need for transparent communication and accountability between financial authorities and company leaders.
During a Senate Agriculture Committee session in 2022, Chair Behnam stated that his team had met with SBF and other FTX officials ten times in the fourteen months leading up to the exchange’s collapse. The individuals involved in these encounters were the usual market actors.
However, these dealings are now under intense scrutiny due to FTX’s demise and the founder’s illegal activities. The senators’ request includes a comprehensive list of papers and correspondence to be provided by April 29, 2024. By setting this deadline, the legislative body hopes to assess the CFTC’s relationship with a major player in the crypto market.
It is revealed that SBF and the CFTC had more frequent meetings than just for regulatory evaluations. FTX had plans to introduce innovative products that required regulatory approval through its derivatives exchange in the United States. FTX executives, including Bankman-Fried, informed the CFTC about some of these proposals. These discussions were part of FTX’s larger strategy to expand its business in the regulated US financial markets.
In other crypto news, Meta has announced the launch of enterprise-level Metaverse Quest services specifically for the education sector.