SEC Responsible For FTX Crisis? Ripple Counsel Claims This

The cryptocurrency market witnessed a massive plunge over this week with the collapse of Sam Bankman-Fried’s (SBF) FTX. However, the leaders engaged with the digital asset industry have alleged that the U.S. Securities and Exchange Commission (SEC) is responsible for this crisis.

FTX News takes Crypto market down

The market collapse triggered by Binance’s CZ announcement around FTX has wiped out more than $100 billion. CZ pulled out from the planned buyout this week. However, he disclosed that they took this decision after reviewing the FTX’s books.

Meanwhile, Gary Gensler, SEC Chair’s comments after the collapse of FTX has disappointed several crypto leaders and experts.

In an interview, Gensler stated that investors need better protection in this space. This market is significantly non-compliant, but it still got regulations. He added that investors over the globe are getting hurt as the public falls prey to promotion.

Coingape reported that the SEC has already launched an investigation on the US arm of FTX. The commission is also probing the connection between FTX and several other companies related to SBF.

US Watchdog not making suitable rules

Stuart Alderoty, Ripple’s counsel presented his take on the SEC chair’s comment. He stated that the only runway that’s running out is these worn out is a false talking point from Gensler.

He added that the SEC chair’s dream of elevating power quest is affecting the regulation of the industry. This is directly creating deep financial damage in the country.

Alderoty claimed that the SEC Chair has failed time again to protect anyone. However, he just keeps talking about the Kim Kardashian case when there is a line full of firms standing in bankruptcy courts. This needs to stop.

The impact of the FTX’s collapse can easily be seen in the crypto market as over $100 billion vanished in just few days.