Sen. Warren Calls To Inspect Banks’ Ties With Crypto Following FTX Crash

FTX Crash Updates: Global regulators have been calling to implement strict laws over the cryptocurrency industry in order to safeguard investors from fraud and scams. The collapses of digital assets like LUNC, and TerraUSD, and the FTX crypto platform have made it more certain for the watchdogs to act now.

FTX crash to impact large banks?

As per reports, US Senator, Elizabeth Warren has called out bank regulators to probe financial institutions over their links with the crypto market. This development comes after two banks born losses due to the crash of the FTX exchange.

Warren requested the agencies to give out details of banks that have provided funds, and loans and take deposits from crypto startups. The lawmaker is in pursuit of launching legislation in order to crack down highly volatile market.

In a letter sent to Federal Reserve Chair Jerome Powell and other agency heads, Warren mentioned that FTX Crash shows that digital assets might be more integrated with the banking system. It is the regulators’ duty to make them more aware.

What does this letter mean for crypto?

Congress has planned two hearings on the FTX implosion and its impact. This might happen around next week. Meanwhile, Warren’s letter hints at the increasing concern about the integration of traditional financial markets and the crypto market.

However, Warren is one of the biggest vocal critics of the digital asset market. She has issued multiple warnings against the crypto market in the past. She mentioned that the FTX collapse has uncovered the close links between banks and Shady crypto firms.

The Crypto market cap has dropped under the crucial $1 trillion mark after the horrible FTX crash. It now stands at $840 billion.