Sam Bankman-Fried, the co-founder and former CEO of collapsed crypto exchange FTX, has repeatedly called for a retrial in New York in recent months, where he was sentenced to 25 years in prison following the company’s collapse in 2022.
His renewed public statements coincided with growing online speculation that he could seek a presidential pardon, especially after former Binance CEO Changpeng Zhao (CZ) was forgive last year by President Donald Trump.
Sam Bankman-Fried praises CLARITY Act
Speculation increased this week after Sam Bankman-Fried posted on X, formerly Twitter, praising the proposed CLARITY Act. In his messagehe 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 eliminate digital asset oversight of former Securities and Exchange Commission (SEC) Chairman Gary Gensler, alleging that Gensler had assisted the Biden administration’s Department of Justice (DOJ) in filing charges against him.
In the same message, Sam Bankman-Fried referred to a letter from the House Financial Services Committee. The documentsigned by Chairman Patrick McHenry, called on the SEC to provide documents and communications involving the agency’s Division of Enforcement, the Office of the Chairman, and the DOJ.
Lawmakers sought information about the timing of the charges against Sam Bankman-Fried and his arrest, which came shortly before he was scheduled to testify before the House Financial Services Committee.
Senator Cynthia Lummis, a prominent proponent of digital assets closely aligned with President Trump’s crypto policy agendaresponded sharply to Bankman-Fried’s comments. On Thursday, she wrote that his praise for the CLARITY Act was self-serving.
Lummis rejects pardon talks
“Someone is looking for a pardon and doesn’t realize that the Clarity Act would keep you locked up for much longer than 25 years,” the senator said in her remarks.
Lummis further distanced her proposal from all previous legislative efforts related to Sam Bankman-Fried, to report“My legislation cannot be more different than the bill you tried to buy from Congress over my objection in 2022. We don’t need – and don’t want – your support.”
Her comments were echoed by some social media users, including one who pointed out that the CLARITY Act includes stricter criminal penalties for fraud, misrepresentation and misuse of customer assets when it comes to digital assets.
Under that interpretation, certain crypto-related crimes would be treated as aggravated financial crimes, adding additional years to the standard wire fraud sentences. “Please let it pass!!” the user wrote in response to Lummis’ comments.
The CLARITY Act, also known as the broader Crypto Market Structure Act, is still being negotiated. It is currently on hold while representatives from the banking and crypto industries prepare for another meeting at the White House, scheduled for Friday.
The conversations are expected to focus on unresolved issues including stablecoin rewards programs, decentralized finance (DeFi) provisions, and ethics-related measures that have complicated previous concepts.
Industry participants and government 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 major step forward.”
In a public message, Witt said wrote“We are close,” adding that if both sides continue to negotiate in good faith, he believes the March 1 deadline can still be met.
Featured image of Fortune, chart from TradingView.com
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