U.S. Senator Toomey Explains Why the FTX Crash Does Not Justify Crypto Bans


During a hearing of the Senate Banking Committee on Wednesday (14 December 2022), Republican Senator Pat Toomey of Pennsylvania said that the collapse of FTX was not due to cryptocurrency but rather to the terrible conduct of the exchange itself.

In a few weeks, Toomey will retire from his Pennsylvania Senate position.

“The code committed no crime. FTX and cryptocurrency are distinct entities. FTX was opaque, centralized, and untrustworthy. Generally speaking, cryptocurrencies are open source, decentralized, and transparent. To those who believe this instance supports the prohibition of crypto — and I have really seen this argument made — I beg that you consider numerous other historical analogies.”

Former New Jersey Senator Jon Corzine’s commodity brokerage company failed due to the misappropriation of client cash, including U.S. dollars, to cover trading losses. Nobody claims that the issue was caused by the U.S. dollar or that it should be banned.

“This is not an issue that can be blamed on the instruments used in FTX. The issue was the misappropriation of consumer monies, terrible mismanagement, and probable unlawful activity.”

According to a report from Cointelegraph, he continued by stating: “A few of my coworkers have proposed we put a hold on cryptocurrency legislation while it is being drafted. This is a horribly foolish and unachievable proposal. Unless extreme dictatorial tactics are implemented, cryptocurrencies cannot be stopped.”

Also Read: Gemini Exchange Data Breach Exposes 5.7 Million Client Emails

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