White House & Lawmakers Warn Against Crypto Following Fall Of FTX.
With the revelation of FTX’s liquidity crunch and possible bankruptcy, many regulators and US officials have stepped up to voice their complaints and warnings towards the dangers of digital currencies.
Following crypto exchange FTX’s recent turbulent downfall, on Thursday, White House Press Secretary Karine Jean-Pierre was asked whether regulators should be taking a “harder look” towards the Crypto industry.
To this, Secretary Karine Jean-Pierre responded that the recent news of FTX “further underscores” the concerns surrounding cryptocurrencies, adding that situations like this are why “prudent regulation of cryptocurrencies is indeed needed.”
NOW – White House: "Regulation of cryptocurrencies is needed." pic.twitter.com/01C9VYkff4
— Disclose.tv (@disclosetv) November 10, 2022
“Without proper oversight of cryptocurrencies, they risk harming everyday Americans,” Secretary Karine Jean-Pierre added.
US Lawmakers’ Take
A number of U.S Lawmakers have also recently come out to voice their own opinions on the situation and gave out warnings against cryptocurrencies following the fall of FTX.
Rep. Maxine Waters, who chairs the House Financial Services Committee had even put out a statement, pushing for additional oversight and regulations on crypto trading platforms.
“The recent fall of FTX.com – a major international cryptocurrency trading platform – is just the latest example in a string of incidents involving the collapse of cryptocurrency companies and the impacts these failures have on consumers and investors.” Rep Waters said in her statement.
“Now more than ever, it is clear that there are major consequences when cryptocurrency entities operate without robust federal oversight and protections for customers.“
Other senators like Sen. Sherrod Brown who chairs the Senate Banking Committee also heeded warnings against cryptocurrencies, with Brown describing the fall of FTX as a “loud warning bell” that cryptocurrencies can fail.
The recent collapse of FTX is a loud warning bell that cryptocurrencies can fail, and just like we saw with over-the-counter derivatives that led to a financial crisis, these failures can have a ripple effect on consumers and other parts of our financial system.
— Senate Banking and Housing Democrats (@SenateBanking) November 10, 2022