Sen. Lummis points to FTX-Binance as catalyst for her crypto legislation

Quick Take

  • Sen. Lummis points to her bill with Sen. Gillibrand as providing regulations that would have prevented the FTX liquidity crunch earlier today. 

At least one senator is calling on Congress to reconsider crypto legislation following Binance's bailout of FTX earlier today.

"Market manipulation, lending activity, and whether customer funds and assets were appropriately safeguarded are just a few of the many issues my colleagues and I need to consider in the coming days," wrote Sen. Cynthia Lummis, R-Wyo., in a statement. 

Lummis pointed to her bill with Sen. Kirsten Gillibrand, D-N.Y., as providing regulations "essential to ensuring customers are protected while still promoting responsible innovation."

FTX's liquidity crunch has already come to the attention of federal regulators and Congress, where a bill tightly associated with FTX CEO Sam Bankman-Fried has been a core of recent crypto legislation. The outlook for that bill is grim.

But with midterm elections tonight expected to turn out at least a Republican House of Representatives under a Democratic administration, Congress seems set for months of legislative limbo. 

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