Senator John Kennedy released a verbal beatdown on SEC nominee Paul Atkins during a heated Senate Finance Committee hearing. Kennedy didn’t mince words when he grilled Atkins about Sam Bankman-Fried’s parents and their connections to Stanford University where they both work as chaired professors at the law school.
The Louisiana senator demanded answers about why the SEC hadn’t taken action regarding reports that Bankman-Fried’s parents were seeking a presidential pardon for their son. “The SEC hasn’t done a damn thing,” Kennedy declared with his characteristic Southern drawl, promising to “pounce like a ninja” in future hearings for updates.
Kennedy’s questioning highlighted how Joseph Bankman and Barbara Fried allegedly profited millions from their son’s illegal activities at FTX. Not only were they supposedly involved in company operations, but they also made sizable donations to Stanford University. Kennedy wanted to know if Stanford had returned the tainted money. He emphasized that consumer confidence is at stake when prestigious institutions keep funds potentially linked to fraud.
Stanford professors Bankman and Fried lined their pockets with millions from their son’s FTX fraud while funneling donations to their employer.
The senator didn’t stop there. He blasted the SEC for its failure to detect the FTX fraud earlier, pointing out the irony that the agency claims authority to regulate cryptocurrency but couldn’t spot glaring issues that a minimal investigation would have revealed.
“How hard would it have been to look?” Kennedy questioned, comparing the SEC’s aggressive actions against other crypto companies to its apparent blind spot regarding FTX. Bankman-Fried’s casual appearance and demeanor raised red flags that should have prompted closer scrutiny from regulators.
Kennedy’s concerns extend beyond just this case. He raised alarms about a potential two-tier justice system where well-connected figures might receive different treatment. The senator demanded transparency in the SEC’s decision-making process and called for accountability.
Looking forward, Kennedy emphasized the need for proactive SEC oversight in the crypto space and a clear regulatory framework to protect investors. The exchange underscored Kennedy’s frustration with what he perceives as regulatory failures.
For Atkins, the message was clear: Kennedy expects answers, action, and equal enforcement of the law. No exceptions.
