Senator Elizabeth Warren (D-MA) has posted a sharp warning regarding the newly proposed CLARITY Act on Wednesday, arguing that an endorsement from disgraced FTX founder Sam Bankman-Fried should serve as a major red flag for lawmakers.
The exchange played out on X (formerly Twitter), where Bankman-Fried, currently serving a 25-year prison sentence for fraud, posted a message praising the legislation and crediting President Donald Trump.
“Alarm bells”
Senator Warren, a longtime critic of the cryptocurrency industry, wasted no time in highlighting the convicted felon’s support as evidence of the bill’s potential dangers.
“Sam Bankman-Fried, the fraudster who stole at least $8 billion from customers using his crypto exchange, just endorsed the CLARITY Act,” Warren wrote. “That should set off alarm bells.”
You Might Also Like
She emphasized that regulatory frameworks must prioritize consumer safety over industry growth. “Any crypto market structure bill must protect investors, our financial system, and American taxpayers,” Warren added.
SBF’s prison post
The controversy began when Bankman-Fried’s account posted a full endorsement of the bill, framing it as a victory against the Securities and Exchange Commission (SEC).
“The CLARITY Act will be a huge milestone for crypto and a huge achievement for @realDonaldTrump,” SBF wrote.
Bankman-Fried went on to reiterate his long-standing grievance against SEC Chair Gary Gensler, suggesting his prosecution was politically motivated by his regulatory lobbying efforts.
“I was championing a similar bill to get crypto out of Gensler’s hands when Gensler helped Biden’s DOJ put me behind bars,” Bankman-Fried claimed.