SBF Criticizes SEC-CFTC Rivalry as Prosecutors Oppose Retrial

• Bankman-Fried blames the SEC-CFTC rivalry for creating crypto regulatory confusion.
• Prosecutors reject retrial, citing prior knowledge of FTX witness testimony.
• Political influence and clemency speculation surround Bankman-Fried’s 25-year sentence.

The legal battle surrounding the collapse of FTX continues to evolve as its founder, Sam Bankman-Fried, raises new criticism of U.S. regulators. The imprisoned executive recently argued that regulatory rivalry in Washington created serious risks for the digital asset sector. 

He specifically pointed to tensions between the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). Bankman-Fried claimed that former SEC Chair Gary Gensler attempted to expand the agency’s control over cryptocurrency oversight. According to his view, that conflict became one of the biggest threats facing the crypto industry during the previous administration.

Regulatory Conflict and Crypto Oversight

Bankman-Fried argued that regulatory competition in Washington created confusion for companies operating in the crypto market. He claimed that Gensler pushed aggressively to bring more digital asset activity under SEC jurisdiction. Consequently, the move reduced the influence of the CFTC in supervising certain crypto markets.

Besides regulatory disputes, Bankman-Fried also connected the issue to political influence in Washington. He suggested that lawmakers such as Elizabeth Warren support broader SEC authority over digital assets. Consequently, crypto companies faced uncertainty about licensing requirements and compliance rules.

Moreover, he argued that regulators demanded licenses that firms could not realistically obtain. Hence, many companies struggled to determine which agency controlled their operations. Industry participants often feared enforcement actions from multiple regulators at once.

Additionally, Bankman-Fried praised the regulatory philosophy of Donald Trump, who previously replaced Gensler with pro-market leadership at the SEC. He highlighted the appointment of Paul Atkins as an example of a more predictable approach. According to Bankman-Fried’s view, regulators should create rules first and enforce them afterward.

Prosecutors Oppose Retrial Request

However, Bankman-Fried faces ongoing legal pressure unrelated to regulatory debates. U.S. prosecutors recently urged a federal judge to reject his request for a new trial. The request attempted to introduce testimony from former FTX executives who did not appear during the original proceedings.

Prosecutors argued that the defense already knew about those witnesses before the 2023 trial. Consequently, their statements do not qualify as newly discovered evidence. They also stressed that strong financial records showed Bankman-Fried directed large transfers of customer funds to Alameda Research.

Additionally, prosecutors rejected claims that FTX remained solvent before its collapse. Court filings indicated the exchange held only about 105 bitcoin against customer claims of nearly 100,000 bitcoin.

Political Claims and Clemency Debate

Bankman-Fried also suggested that political motives influenced his prosecution. However, prosecutors rejected that argument and highlighted his history of donations to Democratic campaigns.

Meanwhile, speculation about a possible presidential pardon continues. President Trump previously granted clemency to Ross Ulbricht and Changpeng Zhao. However, Trump indicated earlier this year that he does not plan to pardon Bankman-Fried.

Consequently, the former crypto executive continues serving his 25-year prison sentence while courts review his latest legal challenge.

Related: SBF Lobbies for Trump Pardon as ‘Political Victim’; Markets Price 2025 Clemency Odds at Just 4%