… According to this narrative, FTX established itself in the Bahamas because the United States lacked a comprehensive regulatory framework for crypto. Had Congress acted sooner, proponents argue, FTX would have operated within the United States under proper supervision instead of relocating offshore to avoid regulatory uncertainty. […]
The problem with this narrative is that it is completely backwards. FTX did not collapse because the Bahamas lacked a bespoke crypto regulatory framework. FTX chose the Bahamas precisely because it had one.
The crypto industry’s “clarity” talking point is a form of Orwellian doublespeak deployed to advance a self-serving deregulatory agenda in Washington. The reality is that FTX and many other crypto firms deliberately avoided the United States because they did not want to register with the SEC and comply with the federal securities laws.
Source: The Crypto Industry Wants America to Become the Bahamas – The FinReg Blog