Kennedy warned that SBF cannot receive any preferential treatment and also called for stricter action against SBF and his family. Meanwhile, Senator Ted Cruz introduced the “Anti-CBDC Surveillance State Act” to block the Federal Reserve from issuing a central bank digital currency, due to privacy concerns. In South Korea, a court temporarily lifted a business suspension that was imposed on major crypto exchange Upbit. This now allows it to resume onboarding new users despite ongoing legal battles and regulatory scrutiny over alleged KYC and anti-monopoly violations.
No Special Treatment for SBF
US Senator John Kennedy grilled prospective SEC chairman Paul Atkins during a Senate Banking Committee hearing on March 27. He specifically focused on the possibility of a presidential pardon for Sam “SBF” Bankman-Fried.
Kennedy is a Republican from Louisiana, and directed a series of pointed questions at Atkins. These questions specifically addressed reports that SBF’s parents, Joseph Bankman and Barbara Fried, were seeking a pardon for their son. The senator also raised concerns about donations made by the Bankman-Fried family to Stanford University and called on the SEC to take action to ensure there are no double standards in the application of justice.
Sen. Kennedy questioning Atkins
Kennedy was especially frustrated with what he described as SEC inaction, and also vowed to continue pressing the agency on the matter. He argued that SBF and his family should not be treated differently from other Americans, stating, “They are crooks, and I expect the SEC to do something about it.”
Speculation about a possible pardon gained more traction after reports surfaced in January that SBF’s family was seeking clemency from the newly elected US President Donald Trump. These efforts happened in the wake of Trump’s decision to pardon Ross Ulbricht, the founder of the Silk Road marketplace. However, experts cast doubt on the likelihood of SBF receiving a similar pardon. William Livolsi, executive director of the White Collar Support Group, pointed out that the cases differ quite a bit as Ulbricht’s crimes were non-violent and victimless, while SBF’s actions led to billions of dollars in losses for investors.
(Source: Truth Social)
Despite facing a lengthy prison sentence, SBF recently tried to realign himself politically by granting interviews to conservative media outlets. In February, he spoke with The New York Sun and followed up in March with an interview with Tucker Carlson. However, the latter interview was not approved by prison authorities, and resulted in SBF being placed in solitary confinement and transferred from a New York prison to a facility in Oklahoma.
Cruz Introduces Another Bill to Ban CBDC
Other US lawmakers are also trying to make a difference in the crypto space. US Senator Ted Cruz introduced new legislation on March 26 that is aimed at preventing the Federal Reserve from issuing a central bank digital currency (CBDC).
The proposed bill is called the “Anti-CBDC Surveillance State Act,” and will block the Fed from offering digital financial products or services directly to American citizens, effectively banning the creation of a retail CBDC. This move is very similar to a bill that was reintroduced earlier in March by Representative Tom Emmer, a Republican from Minnesota. In fact, both bills place a lot of emphasis on the need to preserve the privacy protections associated with traditional cash and coins.
First page of the Anti-CBDC Surveillance State Act
The Federal Reserve has been researching the potential for a digital dollar since 2020, with at least four projects currently underway. However, Cruz consistently opposed the idea of a CBDC, and introduced related legislation multiple times since 2022. He openly voiced his concerns about the government using digital currency to exert greater control over citizens’ financial lives. Emmer shares similar concerns, and called CBDC technology “inherently un-American” and even warned it could threaten personal freedoms.
Emmer speaking about CBDCs at a House Financial Services Committee Hearing
Critics argue that CBDCs could lead to mass surveillance and increase the government’s ability to monitor financial activity. Despite this very strong opposition in the US, several countries around the world are continuing to explore or develop their own CBDCs. In Europe, lawmakers are advancing plans for a digital euro despite low consumer interest. Israel also shared preliminary designs for a digital shekel, and Iran is reportedly preparing to launch a CBDC.
In the US, resistance to CBDCs is still very strong. President Donald Trump pledged to block the creation of a digital dollar, and Federal Reserve Chair Jerome Powell stated that no CBDC will be issued under his leadership. While CBDC proponents argue that digital currencies could improve the efficiency of financial systems, critics fear the centralization of money supply and the erosion of individual privacy.
Court Suspends FIU Ban on Upbit Services
Meanwhile, the crypto landscape in South Korea is changing as well. A South Korean court temporarily lifted a partial business suspension that was imposed on the country’s largest crypto exchange, Upbit. This allows the platform to resume onboarding new clients while the legal dispute unfolds.
The suspension was originally issued by South Korea’s Financial Intelligence Unit (FIU) on Feb. 25, and it barred Upbit from accepting deposits and withdrawals from new customers for three months. The FIU claimed the penalty was due to Upbit’s alleged violations of rules prohibiting transactions with unregistered virtual asset service providers (VASPs).
After the suspension, Dunamu, Upbit’s parent company, filed a lawsuit against the FIU looking to overturn the order and requested an injunction to suspend the enforcement of the restriction. On March 27, local media reported that the court granted the injunction, and delayed the suspension until 30 days after a final court ruling. Overall, this latest development allows Upbit to continue servicing new users in the interim.
Upbit has operated since 2017, and is facing broader regulatory scrutiny beyond the recent suspension. In October of 2023, the Financial Services Commission (FSC) launched an investigation into the exchange over potential violations of anti-monopoly laws. Additionally, the FIU accused Upbit of breaching Know Your Customer (KYC) regulations, identifying between 500,000 and 600,000 potential KYC violations during a review of the exchange’s business license renewal. The exchange is also suspected of facilitating approximately 45,000 transactions with unregistered foreign crypto platforms, which is in violation of South Korea’s financial transaction reporting laws.
South Korea’s regulators have greatly increased their efforts to tighten control over the crypto industry, particularly when it comes to cross-border transactions. In late 2024, Finance Minister Choi Sang-Mok announced new reporting requirements for businesses handling international digital asset transactions, which is aimed at curbing tax evasion and currency manipulation. As part of this crackdown, Google Play blocked the apps of 17 crypto exchanges at the FIU’s request, with additional steps being taken to restrict access through internet platforms and Apple’s App Store.
