During the peak of abortion politics in the summer, the Prospect reported how Gillibrand, a recently anointed “crypto hero,” unveiled the industry-friendly Responsible Financial Innovation Act with Sen. Cynthia Lummis (R-WY). The bill included a study of whether to allow people to purchase crypto assets for their retirement accounts. Eventually, Gillibrand would co-sponsor Sens. Debbie Stabenow (D-MI) and John Boozman’s (R-AR) Digital Commodities Consumer Protection Act (DCCPA), the most likely crypto bill to pass, which would designate oversight powers for “digital commodities” to the CFTC, as opposed to the Securities and Exchange Commission. Throughout the development of a crypto regulatory framework, the New York senator has consistently functioned as a moderating force.

But what was supposed to be an exciting year for crypto insiders to demonstrate that their technology could scale up and bring millions of everyday consumers into the fold has instead been a disaster. The hype surrounding NFTs collapsed almost as quickly as they entered the public’s consciousness. Prices crashed over the spring and companies had to be rescued by one of the industry’s giants, the exchange platform FTX. Then last month, FTX fell amid allegations of widespread fraud and illegal use of customer funds to make risky bets. That could be just the beginning, as other crypto firms like BlockFi announce bankruptcies.

It’s maybe the least likely possible time for anyone on Capitol Hill to hire a crypto lawyer, given the taint of the industry and its bipartisan influence-peddling campaign. But that’s what Gillibrand has done.

(via Memeorandum)