Republican and Democratic senators have publicly rejected imprisoned FTX founder Sam Bankman-Fried’s support for the proposed Clarity Act crypto market structure bill.
The backlash followed a social media post made via a proxy in which Bankman-Fried endorsed the legislation and suggested its passage would be a win for President Donald Trump, prompting sharp responses from lawmakers on both sides of the aisle.
“Someone’s looking for a pardon and doesn’t realise the Clarity Act would have you locked up for much longer than 25 years,”
Said Senator Cynthia Lummis, adding:
“We do not need—nor want—your support.”
Massachusetts Senator Elizabeth Warren also condemned the endorsement, warning it should “set off alarm bells” and stating that any crypto market structure legislation must protect investors, the financial system and taxpayers, while describing Bankman-Fried as a “fraudster who stole at least $8 billion from customers”.
Bankman-Fried is currently serving a 25-year prison sentence after being convicted in 2023 on seven counts of fraud and conspiracy linked to the November 2022 collapse of FTX, and although speculation has mounted over a potential pardon, reports indicate President Trump has ruled out clemency.
The Clarity Act, which has backing from members of the Trump administration including Treasury Secretary Scott Bessent who recently said that “clarity on the Clarity bill would give great comfort to the market”, has seen its predicted odds of being signed into law before year-end fall around 16% over the past week to 69% on Polymarket.
The bill has also faced industry friction, with Coinbase withdrawing support last month over proposed restrictions on stablecoin yield products, underscoring the broader tensions shaping the US crypto regulatory debate.