The chairman of the SEC is under investigation for the FTX case

U.S. Congressman Tom Emmer announced that he has launched an investigation against the chairman of the U.S. Securities and Exchange Commission (SEC), Gary Gensler, for allegedly favoring Sam Bankman Fried (aka SBF), former CEO of FTX.

Via his Twitter account, Emmer noted that both Gensler and SBF were working on managing “legal loopholes for obtain a regulatory monopoly“. The congressman’s request was supported by Jake Chervinsky, policy director of the Blockchain Association, through a message On the same social network.

Chervinsky said that for several months in Washington, those pushing for regulation of the cryptocurrency market “argued that FTX could work out a deal with the SEC.”

In his view, this could set a “damaging” precedent for the entire industry.He believes it should “take what it can.” Finally, he thanked Emmer for initiating the investigation.

Gensler, for his part, participated in an interview with CNBC in which he said he could not provide details about the FTX-related investigation. The U.S. official said only. he compared the situation on the stock exchange, which is managed by SBF, to the collapse of Terra.

“Investors suffer when you combine large amounts of client money, nondisclosure and leveraged debt to their disadvantage,” Gensler explained.

As reported by CryptoNews, the resounding collapse of FTX, one of the world’s largest cryptocurrency exchanges, caused the company to be declared in bankruptcy and the SBF’s resignation as CEO of the company..

FTX’s bankruptcy comes three days after the stock market began to collapse, after being reported by mismanagement Of clients’ and investors’ funds.