Despite FTX Meltdown, US Senator Has This To Say About Crypto Future

Despite the chaos in crypto market with the fallout of FTX, supporters of crypto are unbridled about the industry’s future. The recent collapse of Sam Bankman-Fried FTX has even attracted the White House’s attention. Regulatory authorities, around the world and just the U.S., are looking closely into the negative effects of such fallouts in the nascent industry. In this context, U.S. Senator Bill Cassidy said the markets will eventually decide the future of crypto.

‘Crypto Untainted’

Senator Cassidy said people had blindly invested into crypto projects ignoring the fundamentals. Speaking to CNBC on Friday, he said the fact that people invested blindly does not necessarily taint the crypto ecosystem entirely. However, industry leaders indicated that the damage done by FTX fallout would impact all stakeholders in the ecosystem. Binance CEO CZ said the incident would mean tougher scrutiny and licensing criteria, going forward. Licenses around the globe will be harder to get and there will be increased regulatory scrutiny on crypto exchanges, he said at the time.

“There’s a future for crypto. The markets will decide. Folks have gone into this eyes closely shut, ignoring some fundamentals beneath it. That’s not the way you should enter into any business transaction. This doesn’t entirely taint crypto.”

On the other side, the U.S. Securities and Exchanges Commission (SEC) is probing if there was any misuse of user funds of FTX US. Apart from this, the White House authorities have already hinted of factoring in the FTX incident while crafting regulatory guidelines. A White House officer recently said a lack of oversight on cryptocurrencies is causing harm to average American lives. Recent events in crypto highlight the need for crypto regulation, the officer said.

Meanwhile, the chapter 11 bankruptcy proceedings for the trouble crypto exchange already underway. Earlier in the week, new FTX CEO John Ray criticized the working style of Sam Bankman-Fried. In a court filing as part of the bankruptcy process, he said the situation at the company is “a complete failure.”