Senators Dismiss SBF Endorsement of Crypto Clarity Act

TLDR

• Sam Bankman Fried voiced support for the Clarity Act from prison.

• Senators Lummis and Warren publicly rejected his endorsement.

• SBF is serving a 25 year sentence for fraud and conspiracy.

• Clarity Act seeks to define SEC and CFTC crypto oversight.

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Senators from both parties have pushed back after imprisoned FTX founder Sam Bankman-Fried expressed support for the Clarity Act. Lawmakers made clear that his endorsement is neither needed nor welcomed as Congress debates crypto market structure legislation.

Bankman-Fried, who is serving a 25-year prison sentence for fraud and conspiracy, praised the bill in a post shared from prison. His comments triggered swift responses from Republican and Democratic senators involved in shaping crypto policy.

Lummis and Warren Reject SBF Endorsement

Wyoming Senator Cynthia Lummis responded directly to Bankman-Fried’s remarks. She wrote, “We do not need nor want your support,” and said her legislation differs from earlier proposals he backed in 2022.

Lummis added that the Clarity Act would have imposed stronger consequences. She stated that the bill would have resulted in a longer sentence than the 25 years he received.

Massachusetts Senator Elizabeth Warren also criticized the endorsement. She said Bankman-Fried’s support should “set off alarm bells” for lawmakers.

Warren described the former executive as a “fraudster who stole at least $8 billion from customers.” She emphasized that any crypto market structure bill must protect investors and taxpayers.

Background on SBF Conviction and Political Posts

Bankman Fried was convicted in 2023 on seven counts of fraud and conspiracy following the collapse of FTX in November 2022. Prosecutors said he misused customer funds through affiliated trading firm Alameda Research.

In 2024, he was sentenced to 25 years in federal prison. He is currently appealing the conviction.

Recent social media posts attributed to him have included supportive remarks about President Donald Trump. Some observers have interpreted the messages as attempts to secure a presidential pardon.

According to reports, the White House has indicated that no pardon is planned. President Trump has previously granted clemency to other crypto figures, though officials have ruled out similar action for Bankman Fried.

Clarity Act Faces Ongoing Legislative Debate

The Clarity Act seeks to establish clearer jurisdiction between the Securities and Exchange Commission and the Commodity Futures Trading Commission. The House passed the measure last year, and Senate discussions are ongoing.

The bill has faced debate over stablecoin yield treatment and concerns related to conflicts of interest. Some crypto firms have adjusted their positions as revisions were introduced.

Treasury Secretary Scott Bessent recently said that clarity on the bill would provide reassurance to markets. However, prediction market data shows fluctuating odds of passage before year end.

Bankman Fried previously supported the Digital Commodities Consumer Protection Act in 2022. That proposal lost momentum after the collapse of FTX and subsequent criminal proceedings.

It remains uncertain whether his endorsement will affect the legislative process. Lawmakers from both parties have signaled that the debate over crypto regulation will proceed independently of his public statements.

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