Two U.S. senators are urging President Donald Trump not to grant clemency to former FTX CEO Sam Bankman-Fried, who is serving a 25-year prison sentence for fraud. Senators Cynthia Lummis of Wyoming and Ruben Gallego of Arizona introduced a resolution stating that Bankman-Fried should not receive a presidential pardon, marking a formal effort to keep the court’s verdict intact.
Bankman-Fried was convicted in November 2023 on seven criminal counts in New York in what prosecutors described as one of the largest financial fraud cases in recent history. His businesses, FTX and Alameda Research, collapsed in November 2022 after billions of dollars in customer funds were found to have been diverted to cover trading losses at Alameda.
Resolution comes amid failed appeal and clemency debate
The Senate resolution follows a recent court decision rejecting Bankman-Fried’s appeal to overturn his conviction or secure a new trial. With legal avenues narrowing, attention has shifted toward the possibility of presidential clemency.
Trump has previously pardoned figures linked to the digital asset sector, including Silk Road operator Ross Ulbricht and former Binance CEO Changpeng Zhao, adding weight to concerns in Washington that Bankman-Fried could seek similar relief. The White House has not commented on the latest resolution.
Crypto legislation and ethics concerns intersect
The push against a potential pardon comes as lawmakers debate broader cryptocurrency legislation aimed at creating a federal regulatory framework. A key proposal, the Digital Asset Market Clarity Act, is currently under consideration in the Senate, with prediction markets suggesting a high likelihood of passage before the end of the year.
At the same time, concerns are growing over ethical risks tied to political involvement in cryptocurrency ventures. Gallego has proposed restrictions that would bar the president, vice president, and senior federal officials from engaging in certain digital asset transactions while in office.
Market sentiment reflects uncertainty
The political developments are unfolding alongside signs of caution in the cryptocurrency market. During the workweek of June 8–12, U.S. spot Bitcoin ETFs recorded net outflows totaling about $319.3 million, despite a modest inflow on the final day.
Prices also edged lower, with Bitcoin falling 1.23% to $65,456.52 and Ethereum declining 0.74% to $1,779.19. The total cryptocurrency market capitalization stands near $2.33 trillion, with Bitcoin maintaining a dominant share of roughly 56.6%, underscoring its continued influence on overall market direction.
Broader push for oversight
The bipartisan effort led by Lummis and Gallego signals deeper concern in Congress about maintaining trust in financial markets and limiting political interference in high-profile criminal cases. It also aligns with a wider push to establish clearer regulatory oversight for digital assets, as lawmakers attempt to address gaps that have previously allowed systemic risks to develop.
Concerned about FTX fallout and crypto regulation? Explore how future US crypto regulation could reshape markets and investor protections.
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