FTX Penetration of CFTC by Hiring Spree of Former CFTC Officials | Better markets

by Dennis M. Kelleherco-founder, president and CEO

the number one priority of FTX and its former CEO Sam Bankman Fried (SBF) was to ensure that the weakest, least funded, easiest to penetrate, and most capturable regulator was in charge of crypto regulation. This is because they wanted the form or appearance of regulation without the reality of regulation. This regulator was definitely the CFTCwith fewer total employees in 2022 (676) than enforcement cases brought in 2022 (760) by the SEC, which was a dreaded regulator that crypto and FTX desperately wanted to avoid. This is why the primary objective of its nearly $100 million in campaign spending and legislative effort was to put the CFTC in the lead. They were awarded two billsone sponsored by the top Democrat and Republican on the Senate Agriculture Committee, who continued to push the very imperfect FTX/SBF approved invoice even after the collapse of FTX!

Proving that the CFTC was the easiest to penetrate, capture and influence, CFTC Chairman Behnam was “a key ally” of FTX and SBFwho proceeded with a wave of hiring former CFTC officials to lead their CFTC influence and lobbying campaign (while also tell everyone what a formidable regulator the CFTC was, including after the FTX explosion!). Revolving door hires were a key part of FTX/SBF’s strategy because it not only buys generic knowledge and expertise, but also unique inside knowledge, access, influence, and ultimately favorable outcomes. . Former CFTCs not only know and have many friends at the CFTC (as well as their direct and personal phone numbers and emails), but also have a unique inside knowledge of how the CFTC works and tons of information not public, such as current positions. have taken, the issues that excite or concern them, the arguments that make the best/worst impressions, the things they like/dislike to see in the applications, and much more.

While FTX/SBF used the revolving door strategy all over Washington, the CFTC was the focus. It appears that at least a dozen CFTC officials have passed through the CFTC payroll revolving door at FTX, either directly on staff or indirectly as lobbyists, lawyers or consultants. Here is the list that Better Markets has complied with so far. We hope others will check our list and identify additional names to add (and, of course, correct any errors). We will update this list based on any new or additional information.

Former CFTC managers/staff who work/have worked for FTX/SBF:

Mark Wetjen – FTX Head of Policy and Regulatory Strategy, board member of LedgerX and FTX US Derivatives, advisor to FTX US on its compliance standards and reporting operations; Former CFTC Acting Chairman and CFTC Commissioner

Ryne Miller – FTX US General Counsel; former CFTC attorney for former Chairman Gensler (washing station)

Brian G. Mulherin – LedgerX (former FTX Derivatives US dba) General Counsel; former CFTC Associate Director of CFTC Swap Dealer and Intermediary Oversight (DSIO) (now Market Participants Division) (MPD)

Matt Kulkin – FTX outside counsel at WilmerHale partner; former director CFTC DSIO

Chris Giancarlo – FTX consultant/lobbyist; lead attorney Willkie Farr; former chairman of the CFTC (Initiated)

Jill Sommers – FTX board member; former commissioner of the CFTC (washing station)

Jeff Bandman – FTX consultant/lobbyist; former CFTC Senior Advisor to the CFTC Chairman

Jim Newsom – FTX consultant/lobbyist; delta strategies; former chairman of the CFTC

Daniel Gorfine – FTX consultant/lobbyist; Gattaca Horizons LLC; former Chief Innovation Officer CFTC

Charlie Thornton – FTX consultant/lobbyist; Lobbying firm T Cap Solutions; several former CFTC positions, including most recently adviser to former CFTC Chairman Heath Tarbert (2019-2021).