On Thursday, the White House argued that further regulation of cryptocurrencies is necessary to protect Americans from potential damage.
Speaking at a news conference, White House press secretary Karine Jean-Pierre said the Biden administration “has long emphasized that, without proper control of cryptocurrencies, they risk hurting regular Americans.”
It’s something we’re keeping an eye on, and it’s something we consider to be significant,” she added. The latest developments show that these worries are well founded, and that cryptocurrency regulation is necessary.
Jean-reference Pierre’s to “recent news” was likely to be about the recent demise of the FTX cryptocurrency exchange. Analysts are preparing for a further decline in cryptocurrency values as authorities investigate the company for possible securities breaches.
After undergoing the cryptocurrency equivalent of a bank run, FTX decided earlier this week to sell itself to larger competitor Binance. As doubts about FTX’s financial stability persisted, many customers abandoned the platform.
Sam Bankman-Fried, CEO and creator of FTX, was formerly seen as a rescuer for many cryptocurrency startups who were in financial distress before these events unfolded.
The inquiry into Bankman-Fried and FTX by people in the crypto community as well as securities authorities is concentrating on the idea that the business may have utilized clients’ cash to finance wagers at Bankman-hedge Fried’s fund, Alameda Research. Brokers in conventional markets are obligated to keep customer money separate from corporate cash. When rules are broken, violators may face consequences.