Crypto Should Ghost the SBF Trial

This promises to be a month of reckoning in the world of crypto as Sam Bankman-Fried, the former cargo-clad-golden-geek turned alleged crypto-hustling fraudster, appears in court to face conspiracy and fraud charges. With the media spotlight firmly fixed on the unfolding courtroom drama, there’s a real risk that legitimate crypto businesses will be tempted to weigh in on deception and bad actors rather than focusing on their customers and business strategy.

Katherine Snow is the Head of Legal at Messari, the leading market intelligence platform for the crypto economy, where she drives policy and legal strategy in key jurisdictions worldwide.

Bankman-Fried’s trial is igniting a media spectacle – from FTX’s customers and investors suffering staggering losses, to his own swift ascent and descent as the world’s youngest billionaire, and the scandalous whispers of drug-fueled Bahamian benders and polyamory. Piling on will be at least eight Hollywood projects, affiliated books (*cough* Michael Lewis), and podcasts about FTX that have been waiting in the wings for this moment. The frenzy promises to surpass even the recent, meme-fueled Gwyneth Paltrow ski case or the Depp vs. Herd spectacle.

Meanwhile, against all odds, the industry has begun to find its footing in a wary Washington, and the kick-off of the trial risks new headwinds. Instead of playing into the distraction, it must not allow the actions of Bankman-Fried to tarnish the good faith work of the sector to advance common sense regulation.

The crypto industry has rapidly shifted from the periphery to the forefront in D.C. in a remarkably brief span. The sector has established a host of trade associations, think tanks, and political action committees, enlisted a significant cadre of seasoned lobbyists, and formed in-house policy teams. These initiatives have attracted the attention and engagement of policymakers and regulators, underscoring the undeniable promise of blockchain technology and the passion of its proponents.

This advocacy culminated in a remarkable “crypto summer” in June, with four promising regulatory bills successfully voted out of a Congressional committee for the first time. While this is an incredible milestone, unveiling glimmers of regulatory certainty, the journey to enacting any of these bills into…