U.S. Senators Elizabeth Warren (D-Mass.) and Chuck Grassley (R-Iowa) are looking into Commodity Futures Trading Commission (CFTC) Chair Rostin Behnam's ties with Sam Bankman-Fried, the former CEO of the cryptocurrency exchange FTX, which filed for bankruptcy in November 2022 following a disastrous collapse.

The senators have asked Chair Behnam for a complete record of all meetings, phone calls, and emails between him and Bankman-Fried during his tenure. This request is part of a broader investigation into the oversight and regulation of cryptocurrency markets by U.S. lawmakers.

The senators emphasized the importance of transparency and accountability in the relationships between financial regulators and business executives, stating that protecting Americans' savings and retirements requires Congress and market regulators like the CFTC to determine how this multi-billion-dollar crime was allowed to happen.

In a Senate Agriculture Committee hearing in 2022, Chair Behnam revealed that he and his team had met with Bankman-Fried and other FTX executives around ten times in the 14 months before the exchange's collapse. These meetings were regular discussions with market participants. However, following the collapse of FTX and the criminal activities of its founder, these interactions have become the subject of a thorough investigation.

The senators' request is detailed and includes a list of documents and communications that must be submitted by April 29, 2024. This deadline allows the legislative body to quickly understand the relationship between the CFTC and one of the most influential figures in the cryptocurrency market before the fall of this body.

The CFTC's meetings with Bankman-Fried were not limited to periodic regulatory reviews. FTX (through its U.S.-based derivatives exchange) sought to introduce innovative products that had to be approved by the regulator. These discussions were part of FTX's broader strategy to expand its presence and operations in the regulated U.S. financial markets.

In addition, Behnam and other CFTC staff were involved in evaluating FTX's applications for various crypto derivatives products. These applications were a significant part of the discussions during the many meetings referred to by Behnam during his testimony.

The senators' investigation of these interactions is part of a broader concern regarding the adequacy of regulatory review and the potential for conflicts of interest or undue influence in the approval processes of new financial products.