The US votes for the House and Senate on Tuesday, potentially setting the course for the next two years of legislative and regulatory action.
The crypto industry tried to play a major role in the election through donations, although the results were muted at best. Despite that, a number of candidates with strong views on crypto are on the ballot, and whether or not they’re elected — as well as which party ends up controlling the House and Senate — could well determine what kind of legislative priorities get attention next year.
Despite their importance, the headline story on Tuesday was the surprise announcement by Sam Bankman-Fried, a major donor and the founder of the trading firm FTX, and Changpeng “CZ” Zhao, the founder of Binance, that the latter was a non-binding signed contract. letter of intent to acquire FTX.
The news came days after CoinDesk first reported that much of FTX sister firm Alameda Research’s balance sheet was made up of FTX’s own exchange token FTT, raising questions and concerns that the company might not be so well collateralized than it pretends to be.
Before last week’s news, Bankman-Fried was a prominent face in Washington DC and told a banking conference last month that he spent much of his time talking to lawmakers and regulators. His influence could wane, given his company’s sudden decline, and legislative issues like the Digital Commodities Consumer Protection Act, which he supported, could suddenly lose industry support.