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Two new bills arrive in the U.S. Congress with “anti-FTX practices.”




Reference Binance countries

Two new bills have been introduced in the U.S. Congress that aim to prevent a recurrence of cases such as the Bitcoin (BTC) and FTX cryptocurrency exchange collapses. The proposals would require disclosure of company information and prohibit companies from using customers’ funds without their consent.

The bills, identified by the codes. H. R. 9424 y H. R. 9422, were introduced by New York Democratic Representative Ritchie Torres. on December 2, 2022, according to information from the U.S. Congress.

Although the bill files are not yet available on the website of the U.S. Congress, it can be seen that bill H.R. 9421 aims to require cryptocurrency exchanges to disclose their Reserve Proofs to the country’s Securities and Exchange Commission (SEC).

It is worth mentioning that after the insolvency of the company founded by Sam Bankman-Fried (aka SBF) became known, as well as its subsequent collapse, similar companies such as Binance, Coinbase, Kraken, KuCoin, and others began to reveal their backup evidence.


These tests were administered to try to regain the trust of users of cryptocurrencies which were affected by the FTX failure. However, it has been reported that, by themselves, these demonstrations do not prove the existence of a single source. solvency of stock exchanges Bitcoin exchanges.

Meanwhile, the other bill introduced by Torres, H.R 9422, focuses on. prohibiting cryptoasset service companies from lending, leveraging, or commingling clients’ funds. via cryptocurrency exchanges “without the consent of a customer.”

Without saying so, this is a clear reference to an “anti-FTX” practice, considering that there are allegations that exchange users’ funds were taken by company authorities to fund Alameda Researchthe trading arm of the exchange house, also founded by Sam Bankman-Fried.

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Other projects in the U.S. Congress

The bills introduced by Congressman Ritchie Torres add to existing bills in Congress. As reported by CryptoNews, there were proposals similar to these waiting to be debatedbut which did not come to fruition.

One such proposal is by Senators Cynthia Lummis and Kirsten Gillibrand. The bill proposes the tax exemption for payments in bitcoin on the territory of the United States, as well as a number of regulations.

According to Lummis, his bill could also prevent cases like FTX’s. Therefore, advanced who will reintroduce his proposal next month before the new Congress, elected last November.

FTX, which previously ranked as one of the most important bitcoin and cryptocurrency exchanges in the market, collapsed in November due to insolvency and amid charges of embezzlement and misappropriation of funds.

This situation led to a contagion that affected other companies exposed to FTX, such as BlockFi, which also filed for bankruptcy a few days ago, as reported in this media.

Although it is too early to know the outcome of the legislative proposals submitted to the U.S. House of Representatives, it is possible that they will make progress, considering that the country’s authorities now are aiming for stricter regulationbecause, presumably, of consumer protection.

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