Ties to FTX crypto boss Sam Bankman-Fried complicate Chuy Garcia’s committee assignments

[ad_1]

However, the decision, which Garcia’s office confirmed when contacted by Crain’s, comes after Mayor Lori Lightfoot made a major question about the $200,000 spent to re-elect Garcia last year by a committee of heavily funded political action by indicted crypto czar Sam Bankman-Fried. , founder of crypto exchange FTX.

Garcia defended the campaign spending, saying it was done by an independent spending group and apparently related to his views on COVID preparedness, not cryptocurrencies. But Lightfoot and other foes in the mayoral race have dismissed that explanation and continue to insist that Garcia has more to explain.

Under the democratic rules of the House, members can generally sit on only one committee at a time. To serve on multiple panels requires a waiver from House leaders.

Garcia had such a waiver in the last Congress, but Democrats are in the minority in the new Congress and their new leader, U.S. Representative Hakeem Jeffries, has made it clear that “few, if any” waivers will be available this time around, a spokesman for Garcia. said. Given this reality, Garcia voluntarily opted out of the financial services spot, even though the panel is considered a very desirable spot for a member and almost certainly comes with regular campaign donations from banks, corporate groups investment and others who want to influence its transactions.

Service on several committees and in particular on financial services has been the subject of debate in recent days in the House Democratic caucus. Some members have argued that there is an apparent conflict of interest that the party would be better off avoiding by keeping members who benefited from Bankman-Fried, who is the subject of indictment for federal fraud, out of the panel.

The expenses on Garcia’s behalf came even though he was not opposed for re-election. Garcia said he didn’t know anything about the expenses until they happened, but admitted talking to Bankman-Fried’s brother. Garcia also said he believes in strong crypto regulation.

Two other members of the Democratic delegation from Illinois, US Representatives Sean Casten and Bill Foster, are expected to remain on the Financial Services Committee.

Update: Garcia’s office came out with a statement: ‘Republicans decide how many Democrats sit on committees because they control the House. The Financial Services Committee is an exclusive committee with limited seats for members minorities, and seniority was prioritized (…) Since Chicago and the 4th District is a transportation hub, Congressman García sits on the Transportation and Infrastructure Committee and has accrued seniority in the 116th and 117th Congresses, it is therefore likely that he will only sit on its main committee, Transport & Infrastructure.”

Meanwhile, he was endorsed for mayor by fellow U.S. Representative Jan Schakowsky, D-Evanston, who described him as “a progressive champion” who “gets things done.”

Mark Walsh contributed.

[ad_2]