The fallout from Sam Bankman-Fried’s crash and burn leading to Binance having to bail out FTX just gets worse. SBF likely faces criminal charges, and there are early, unconfirmed reports he’s on the lam. He wouldn’t be the first.

Meanwhile, one senator is using SBF’s shady doings to promote her bill to provide some clarity and regulation for crypto. Sen. Cynthia Lummis, R-Wyo., says that her bipartisan Lummis-Gillibrand Responsible Financial Innovation Act would provide protection for consumers without stifling the industry.

"Market manipulation, lending activity, and whether customer funds and assets were appropriately safeguarded are just a few of the many issues my colleagues and I need to consider in the coming days," Lummis said in a written statement issued by her office.

Lummis bill, co-authored by Sen. Kirsten Gillibrand, D-N.Y., offers regulations "essential to ensuring customers are protected while still promoting responsible innovation" the statement says.

As we noted yesterday, FTX's crash will likely spell the end of a House bill SBF championed. The outlook for that bill is grim.

With a divided Congress (the fate of the House and Senate won’t likely be known for weeks but signs point to that outcome), it’s questionable if crypto will be a priority in the next session. As for the Lummis-Gillibrand bill, it is the most substantial and comprehensive effort currently in play for digital assets, and it has the support of some in the crypto industry.

Our view is that there’s going to be some regulation. The question is not just how burdensome it will be, but also whether it provides any benefits like market certainty to the digital asset space. We would much prefer SEC Commissioner Hester Peirce’s Token Safe Harbor Proposal 2.0 to get priority consideration, but the Lummis-Gillibrand bill deserves a fair hearing.