The FTX collapse has led to a further decline in the digital asset markets, and regulators around the globe have reacted with fear.
There is therefore a need for tighter regulations regarding cryptocurrencies and the industry. The Biden administration is currently reemphasizing It called for additional regulations and legislation to govern digital assets in America.
Karine Jean-Pierre (White House Press Secretary), stated that the Biden administration has always reminded its citizens about the risk and uncertainty involved in trading cryptocurrencies such as Bitcoin.BTC), Ethereum (ETH), and others due to their volatility and exposure to cyber crimes. Jean-Pierre reaffirmed the need for crypto regulations at the core, using the FTX implosion to illustrate his point.
Jean-Pierre stated during a White House Press Briefing that “the administration has consistently maintained cryptocurrencies risk harmed everyday Americans,” and “This is an issue that clearly we monitor” Recent news highlights these concerns further and demonstrates why prudent regulation of cryptocurrency is needed.
Accordingly, the White House keeps an eye on the Bahamian situation regarding crypto exchanges.
Joe Biden Signs an Executive Order for Crypto Regulation
In March, President Joe Biden issued an executive order that further regulates crypto, in particular digital asset trading. The country was trying to find ways to prevent war-torn Russia from evading sanctions by using digital currencies. The executive order has a wider scope for the crypto industry.
The executive order referred to a few key areas, including the use of crypto for terrorist financing, cyber attacks and scams, as well as the impact on the American financial system. The executive order encouraged the relevant government agencies to collaborate with foreign entities in order to regulate and create policies for crypto ecosystem.
Binance The result of corporate diligence led to FTX’s acquisition. This has allowed FTX to bail out. It was an earthquake for the crypto ecosystem’savior’. FTX Chief Executive Office (CEO), Sam Bankman-Fried, was an active voice in Capitol Hill representing the nascent cryptocurrency industry while also voicing his vision for regulation.