The chairman of the House Financial Services Committee, Rep. Patrick McHenry, thinks FTX founder Sam Bankman-Fried is a “world class sociopath” who “represents what is [the] absolute worst about the world of crypto.”
Earlier this month, Bankman-Fried entered a not guilty plea on a host of fraud charges stemming from the collapse of his cryptocurrency exchange.
Bankman-Fried operated FTX from the Bahamas. He was extradited to the U.S. in December.
McHenry told CBS News’ Major Garrett on “The Takeout” this week that new technologies tend to attract fraudsters, and cryptocurrency in particular needs to be regulated. “The reason why they’re able to take advantage in this marketplace is our failure to actually provide clear rules of the road and a clear set of regulation that protects consumers and enables innovation,” McHenry said.
He dismissed notion that Bankman-Fried may been unaware or misunderstood what caused FTX to lose $8 billion in customer funds and declare bankruptcy.
“That’s bullsh*t,” McHenry said. “[Bankman-Fried has] proven himself to be a sociopath by his actions. He’s proven himself to be untrustworthy by his actions. No word he utters should be believed. Period.”
His committee will hold cryptocurrency hearings in February and plans to present legislation this summer.
“Clear rules of the road here in the United States can unlock this economic potential,” he said.
McHenry said it should be up to members of his committee whether they accept donations from the cryptocurrency industry.
“The people that contribute to my campaign are making a decision for themselves. I’m not making a decision to endorse their ideas. They’re making a decision, endorse my ideas. That’s been my longstanding view,” he said.
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