Just In: White House Reacts To Crypto Crash, FTX Meltdown

White House Crypto Crash Reaction News: In response to the crypto crash and the high volatility around the industry, the White House representatives made some interesting comments. Speaking to media on Friday, White House press secretary Karine Jean-Pierre said cryptocurrencies are harming average American lives. She said the White views the crypto oversight as an important issue. The secretary said the recent events in crypto highlight the need for crypto regulation.

Read More: SBF Resigns, John Ray III Joins As New FTX CEO 

White House On Crypto Crash

The statement from the Biden administration comes amid an ongoing probe on FTX by the U.S. Securities and Exchange Commission. The secretary said the administration is working along with relevant agencies in monitoring the situation in the crypto industry. The SEC probe is focused on how the US arm of FTX is related to other companies associated with Sam Bankman-Fried. The authorities are also looking at whether the crypto exchange mishandled customer funds.

The White House press secretary further said,

“Without proper oversight of cryptocurrencies, they risk harming everyday Americans. So this is something that clearly we monitor and that we see as an important issue but the most recent news further underscores these concerns and highlights why prudent regulation of cryptocurrency is indeed needed. Th White House, along with the relevant agencies, will closely monitor the situation as it develops.”

Earlier, the troubled crypto exchange FTX announced it was going for a voluntary chapter 11 bankruptcy filing. The FTX group, which involves FTX and Alameda Research along with many other companies, will get additional time to assess the situation thanks to the bankruptcy. Also, Sam Bankman-Fried had resigned from his role of the chief executive officer. The group replaced SBF with John J. Ray III as the new FTX CEO.

Meanwhile, the crypto market is running in green following the FTX bankruptcy announcement. However, chances are the crypto market could eventually plummet. As of writing, Bitcoin (BTC) price stands at $16,915, up 0.70% in the last one hour, according to price tracking platform CoinMarketCap.