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The U.S. Securities and Exchange Commission (SEC) and Justice Department (DOJ) are investigating crypto exchange FTX. Coinbase CEO Brian Armstrong, Ripple CEO Brad Garlinghouse, and Circle CEO Jeremy Allaire call for a clear regulatory framework in response to Senator Elizabeth Warren’s tweet on the need for aggressive enforcement in response to the crypto industry.
Crypto Executives Urge Crypto Regulatory Framework in the US
Senator Elizabeth Warren in a tweet on November 10 promotes the need for aggressive enforcement regarding the crypto market amid the FTX crisis. Citing a Wall Street Journal report on SEC investigating FTX, she claims to push the SEC to enforce the law for consumer protection and financial stability.
“The collapse of one of the largest crypto platforms shows how much of the industry appears to be smoke and mirrors. We need more aggressive enforcement and I’m going to keep pushing SEC to enforce the law to protect consumers and financial stability.”
Commenting on Elizabeth Warren’s tweet, Coinbase CEO Brian Armstrong contends that the SEC’s failure to create regulatory clarity in the U.S. caused crypto firms like FTX to settle offshore. Thus, it impacted American investors as 95% of trading activity went offshore.
Ripple CEO Brad Garlinghouse and Circle CEO Jeremy Allaire supported Coinbase CEO that the lack of a proper regulatory framework in the U.S. has left users exposed to the overseas supervisory structure.
Ripple CEO asserts companies need clear regulatory guidance to protect consumers. It will help ensure trust and transparency, as well as prevent crypto trading to go offshore. Brad Garlinghouse pointed to the regulatory framework in Singapore, which define that not all crypto are securities. Meanwhile, SEC Chair Gary Gensler continues to consider all crypto as securities.
Circle CEO Jeremy Allaire insists Senator Elizabeth Warren to help write sound policy and don’t just push to enforcement.
FTX Prepares for Bankruptcy
FTX CEO Sam Bankman-Fried warned investors that the crypto exchange may be forced to file for bankruptcy if it doesn’t get a cash infusion. In fact, FTX exchange needs emergency funding to mitigate the $8 billion cash crunch.
Meanwhile, Binance has backed out from the proposed acquisition due to mishandled customer funds and alleged US agency investigations. FTX investor Sequoia Capital marking its $210 billion investment in FTX to $0 due to bankruptcy risks as Binance backs out from acquisition.
FTX Token (FTT) currently trades at $2.87, down 40% in a day and 89% in a week.
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