Sen. Lummis Rebukes Sam Bankman-Fried, Says CLARITY Act Would Mean Longer Sentence

bitcoinistОпубліковано о 2026-02-27Востаннє оновлено о 2026-02-27

Анотація

Sam Bankman-Fried, the former FTX CEO sentenced to 25 years in prison, has been seeking a retrial and fueling speculation about a potential presidential pardon. This follows former Binance CEO Changpeng Zhao's pardon by Donald Trump. Bankman-Fried recently praised the proposed CLARITY Act, calling it a major achievement for Trump and the crypto industry, and claimed former SEC Chair Gary Gensler helped the DOJ prosecute him. Senator Cynthia Lummis, a key Trump ally on crypto policy, rebuked him, suggesting his support was a self-serving attempt to secure a pardon. She stated the CLARITY Act would have led to a longer sentence for him, as it includes tougher penalties for crypto-related fraud. The bill, currently under negotiation, is part of broader crypto market structure discussions ongoing at the White House, with officials indicating progress towards a potential March 1 deadline.

Sam Bankman-Fried, the co-founder and former CEO of collapsed crypto exchange FTX, has in recent months repeatedly called for a retrial in New York, where he was sentenced to 25 years in prison following the company’s 2022 downfall.

His renewed public statements have coincided with growing online speculation that he could seek a presidential pardon, particularly after former Binance CEO Changpeng Zhao (CZ) was pardoned last year by President Donald Trump.

Sam Bankman-Fried Praises CLARITY Act

The speculation intensified this week after Sam Bankman-Fried posted on X, formerly Twitter, praising the proposed CLARITY Act. In his message, he described the bill as a major milestone for the crypto industry and “a huge achievement” for President Trump.

He added that he had supported similar efforts in the past to remove oversight of digital assets from former Securities and Exchange Commission (SEC) Chair Gary Gensler, claiming that Gensler had assisted the Biden administration’s Department of Justice (DOJ) in bringing charges against him.

In the same post, Sam Bankman-Fried referenced a letter from the House Financial Services Committee. The document, signed by Chairman Patrick McHenry, called on the SEC to provide records and communications involving the agency’s Division of Enforcement, the Office of the Chair and the DOJ.

The lawmakers sought information about the timing of charges filed against Sam Bankman-Fried and his arrest, which occurred shortly before he was scheduled to testify before the House Financial Services Committee.

Senator Cynthia Lummis, a prominent supporter of digital assets closely aligned with President Trump’s crypto policy agenda, responded sharply to Bankman-Fried’s remarks. Writing on Thursday, she suggested that his praise for the CLARITY Act was self-serving.

Lummis Dismisses Pardon Talks

“Someone’s looking for a pardon and doesn’t realize the Clarity Act would have you locked up for much longer than 25 years,” the Senator said in her remarks.

Lummis further distanced her proposal from any prior legislative efforts associated with Sam Bankman-Fried, stating, “My legislation couldn’t be more different than the bill you tried to buy from Congress over my objection in 2022. We do not need—nor want—your support.”

Her comments were echoed by some social media users, including one who pointed out that the CLARITY Act includes tougher criminal penalties for fraud, misrepresentation and misuse of customer assets when digital assets are involved.

According to that interpretation, certain crypto-related offenses would be treated as aggravated financial crimes, adding additional years to standard wire fraud sentences. “Please get it passed!!” the user wrote in response to Lummis’ remarks.

The CLARITY Act, also known as the broader crypto market structure bill, remains under negotiation. It is currently on hold as representatives from the banking and crypto sectors prepare for another meeting at the White House scheduled for Friday.

The talks are expected to focus on unresolved issues, including stablecoin rewards programs, decentralized finance (DeFi) provisions and ethics-related measures that have complicated earlier drafts.

Industry participants and administration officials have indicated that progress is being made. Patrick Witt, Executive Director of the President’s Council of Advisors for Digital Assets, described last week’s discussions as “a big step forward.”

In a public message, Witt wrote, “We’re close,” adding that if both sides continue negotiating in good faith, he believes the administration’s March 1 deadline can still be met.

The daily chart shows the total crypto market cap at $2.28 trillion. Source: TOTAL on TradingView.com

Featured image from Fortune, chart from TradingView.com

Пов'язані питання

QWhat is the main reason Senator Lummis rebuked Sam Bankman-Fried's praise for the CLARITY Act?

ASenator Lummis rebuked Sam Bankman-Fried because she believed his praise was self-serving and an attempt to seek a pardon, and she stated that the CLARITY Act would actually result in a much longer prison sentence for him than his current 25 years.

QAccording to the article, what event intensified speculation about Sam Bankman-Fried seeking a presidential pardon?

ASpeculation intensified after Sam Bankman-Fried posted on X (formerly Twitter) praising the proposed CLARITY Act and describing it as a major milestone for crypto and a huge achievement for President Trump.

QHow does the CLARITY Act propose to treat certain crypto-related offenses, according to social media users cited in the article?

AAccording to social media users, the CLARITY Act includes tougher criminal penalties, treating certain crypto-related offenses like fraud and misuse of customer assets as aggravated financial crimes, which would add additional time to standard wire fraud sentences.

QWhat was the purpose of the letter from the House Financial Services Committee referenced by Sam Bankman-Fried?

AThe letter, signed by Chairman Patrick McHenry, called on the SEC to provide records and communications involving its Enforcement Division, the Office of the Chair, and the DOJ regarding the timing of charges and arrest of Sam Bankman-Fried.

QWhat is the current status of the CLARITY Act and what are the key issues being discussed in the negotiations?

AThe CLARITY Act remains under negotiation and is currently on hold. Key unresolved issues being discussed include stablecoin rewards programs, decentralized finance (DeFi) provisions, and ethics-related measures.

Пов'язані матеріали

Microsoft CEO's Lengthy Post: Two Types of Capital in the Future, Human Capital + Token Capital

Microsoft CEO Satya Nadella published a long essay titled "A frontier without an ecosystem is not stable," expressing deep concerns about the future of enterprises in the AI-driven economy. He argues that AI is fundamentally changing competition by enabling models to absorb and commodify human expertise, potentially allowing a few dominant AI systems to capture disproportionate economic value. To counter this, Nadella introduces the concepts of "Human Capital" (employee knowledge, judgment, creativity) and "Token Capital" (proprietary AI capabilities). He emphasizes that these two forms of capital must create a compounding "learning loop" within organizations, where human guidance drives AI improvement and accumulated institutional knowledge becomes a key competitive advantage. Nadella warns against a future where industries are hollowed out by a few AI models, similar to past outsourcing waves. Instead, he calls for building a diverse AI ecosystem where every company can innovate, retain control over its intellectual property, and ensure value flows broadly across the economy.

marsbit9 хв тому

Microsoft CEO's Lengthy Post: Two Types of Capital in the Future, Human Capital + Token Capital

marsbit9 хв тому

From a $300 Million Valuation to a 'Fire Sale' at Tens of Millions: What Happened to Messari?

On June 12, leading crypto data and capital markets platform Blockworks announced its acquisition of competitor Messari for over $10 million. This price represents a significant discount from Messari's 2022 valuation peak of approximately $300 million, highlighting the survival pressures faced by high-valuation startups during the bear market and a consolidation wave in data infrastructure. Blockworks, founded in 2018, began as a media and events company but has pivoted to focus on institutional-grade data, investor relations, and compliance tools. Its recent Series A extension round, valuing the company at $192 million, aimed to fund this shift and strategic acquisitions like this one. Messari, also founded in 2018, grew as a go-to platform for professional crypto research and data, raising a $35 million Series B at its $300 million valuation in late 2022. However, the prolonged bear market and subsequent internal changes, including founder Ryan Selkis's departure in 2024, increased operational pressures. The acquisition integrates Messari's extensive data platform and API capabilities with Blockworks's strengths in issuer-side disclosure, investor relations, and compliance workflows. The combined entity aims to build a unified "system of record" for the on-chain market. This reflects a broader industry trend where high-quality, structured data is becoming critical for institutional adoption, AI agents, and creating data moats akin to traditional financial platforms like Bloomberg. The deal exemplifies how market consolidation is reshaping the fragmented crypto data landscape.

marsbit10 хв тому

From a $300 Million Valuation to a 'Fire Sale' at Tens of Millions: What Happened to Messari?

marsbit10 хв тому

If the AI Bubble Is Already Bursting, Who Will Truly Survive?

If the AI Bubble is Bursting, Who Will Remain? The debate over an AI bubble is intensifying, with figures like Ray Dalio warning of high levels and Jensen Huang seeing immense, early-stage opportunity. Both views hold truth: a speculative bubble in capital markets likely exists, mirroring the dot-com era, but the underlying technological shift is real and transformative. History shows that while bubbles burst—wiping out overvalued companies and speculative capital—they often leave behind critical physical and digital infrastructure. The dot-com bust, for instance, eliminated many firms but left the global fiber optic networks and data centers that enabled the rise of Amazon, Netflix, and cloud computing. Today's massive AI infrastructure investments (projected at trillions by 2030) in data centers, power, cooling, and GPUs may follow a similar path, creating the foundation for future applications. A key divergence from past bubbles is the "Jevons Paradox" effect in AI. As the cost of AI inference has plummeted by over 99.7% since 2023, enterprise spending on AI has skyrocketed. Cheap "tokens" have unlocked vast, previously uneconomical use cases, moving AI from simple chatbots into core business workflows—code generation, legal document review, scientific simulation, and financial analysis. The market is now in a phase of self-correction, weeding out superficial "API-wrapper" startups, but this cleansing process strengthens the ecosystem. The long-term trajectory is clear. The value is gradually shifting from capital expenditure (CapEx) on hardware to operational expenditure (OpEx) on transformative applications. As AI becomes a utility, the winners will be firms that deeply integrate it to solve vertical industry problems in law, healthcare, finance, and manufacturing. The泡沫 will recede, but the foundational shift towards an AI-powered era across all sectors is irreversible. The underlying productive force of AI contains no bubble.

marsbit41 хв тому

If the AI Bubble Is Already Bursting, Who Will Truly Survive?

marsbit41 хв тому

If the AI Bubble Is Already Bursting, Who Will Truly Remain?

**Summary: If the AI Bubble is Bursting, What Will Remain?** The debate around an AI bubble is intensifying, with figures like Ray Dalio warning of high valuations while Jensen Huang sees immense opportunity. This echoes the dot-com bubble, which saw massive wealth destruction but ultimately left behind critical infrastructure like undersea cables and broadband, enabling future giants like Amazon and Netflix. Similarly, today's AI boom involves trillions invested in data centers, power, cooling, and GPUs, while application-layer revenue remains comparatively modest. This investment-disparity signals a bubble. However, the core technological progress is real and accelerating. AI inference costs have plummeted by over 99.7% since 2023, making intelligence increasingly cheap and accessible. This cost collapse is unlocking vast new demand. Instead of reducing spending, enterprises are tripling their AI cloud expenditure. Cheap "tokens" enable AI to move beyond simple chatbots into complex workflows—automating code writing, legal document review, financial analysis, and scientific research. This follows "Jevons's paradox": improved efficiency leads to greater total consumption. The market is now undergoing a necessary purification, weeding out "API-wrapper" startups with no real moat. The deeper evolution involves a shift from capital expenditure (CapEx) on infrastructure to operational expenditure (OpEx) on value-creation in applications. While hardware vendors currently profit most, long-term value will migrate to AI-native firms solving vertical industry problems. Ultimately, a market correction will cleanse speculative excess but will not reverse the AI+ trend. The massive physical and algorithmic infrastructure being built will endure, becoming a cheap, utility-like foundation. Just as the internet became indispensable to all industries post-2000, AI is poised to empower and redefine every sector, moving society irreversibly toward an intelligence-augmented era. The bubble may burst, but the underlying productive momentum is solid.

链捕手48 хв тому

If the AI Bubble Is Already Bursting, Who Will Truly Remain?

链捕手48 хв тому

Microsoft CEO: In the AI Era, How Do You Define a Company's Moat?

Microsoft CEO Satya Nadella argues that in the AI era, a company's true competitive edge, or "moat," is not determined by choosing the single most powerful model, but by its ability to build a continuous "learning loop." This system integrates and evolves by connecting human workflows, domain expertise, organizational judgment, and employee experience. He posits that future companies will accumulate two types of capital: Human Capital (employee knowledge, judgment, creativity) and "Token Capital" (a firm's own built and owned AI capabilities). Importantly, AI amplifies rather than devalues human capital. Human direction is essential to guide progress, as computational power alone is aimless. The core opportunity lies in creating a closed-loop system where human and token capital reinforce each other in a compound, self-improving cycle. A company must be able to preserve its unique institutional knowledge—its "company veteran" expertise—even if it switches underlying general-purpose AI models. This requires private evaluation benchmarks, reinforcement learning environments based on internal data, and queryable knowledge bases. Nadella warns against a future where economic value is concentrated by a few dominant models that commoditize entire industries' knowledge. Instead, the priority should be building a broad "frontier ecosystem" where every company, industry, and nation can own its learning loop. This allows organizations to retain control of their intellectual property, amplify employee capabilities, and ensure the economic value created by AI is captured within their own businesses and communities. True corporate sovereignty in the AI age comes from turning organizational knowledge into a compounding system that creates enduring, defensible value.

marsbit1 год тому

Microsoft CEO: In the AI Era, How Do You Define a Company's Moat?

marsbit1 год тому

Торгівля

Спот

Ф'ючерси