MEXCDespite 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.”
- BitMine Buys $29 Million in Ethereum as Kalshi Traders Cut $5K Price Odds to 34%
- Bitwise XRP ETF Moves Closer to Launch as Firm Submits Final S-1 Filing
- MEXC Denies Insolvency Rumors, Faces Record Withdrawals as Users Seek Proof of Solvency
- $7B Virtu Financial Holds $63M XRP as Whales Accelerate Daily Sell-Off
- Breaking: Coinbase Nears $2B Deal to Buy Stablecoin Platform BVNK
- Why Is TAO Price Skyrocketing Today?
- After 1,993% Burn Spike, Is Shiba Inu Price Set for a Major Trend Reversal?
- Pepe Coin Price Forms Multi-Year H&S Pattern as Whale Selling Intensifies
- Ethereum Price Forecast: $5K in Sight Post-Fusaka Upgrade
- Chainlink Price Eyes $25 as AllUnity Integrates CCIP for EURAU Expansion
- Sei Price Forecast: Will Robinhood Listing Spark a Rally?
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
