Regulators all over the world have cowered due to the FTX collapse which has caused a further plunge in the digital asset market.
Therefore, there is a call for stricter regulations for cryptocurrencies and their industry. Presently, the Biden administration is reemphasizing its call for more regulations and legislation around digital assets in the United States.
According to White House Press Secretary Karine Jean-Pierre, the Biden administration has never failed to remind its citizens of the impending risk and uncertainty associated with trading cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), and others due to their volatility and exposure to cyber crimes. Using FTX implosion as a yardstick, Jean-Pierre reiterated the need for core crypto regulations.
"The administration has consistently maintained that without proper oversight cryptocurrencies risk harming everyday Americans," Jean-Pierre said during a White House press briefing which was held on Thursday "This is something that clearly we monitor and that we see as an important issue. The most recent news further underscores these concerns and highlights why prudent regulation of cryptocurrencies is indeed needed."
As such, the White House is keeping an eye on the Bahamian crypto exchange situation.
Joe Biden Signs Executive Order For Crypto Regulation
In March, President Joe Biden signed an executive order which served as further regulation of the crypto industry especially, as it concerns digital asset trading in America. Although at that time, the country was seeking means to ensure that war-ladened Russia did not evade sanctions through the use of digital currencies. Now, the executive order holds a broader perspective for the crypto industry.
A few core areas that were referred to in the executive order are the use of crypto for terrorism financing, cyber attacks, and scams and the effects on the American financial economy. The executive order was a drive for the appropriate government agencies to work with other foreign entities to create policies and regulate the crypto ecosystem.
Binance bail out from FTX acquisition after receiving the result of corporate due diligence has turned out to be an earthquake for the former crypto ecosystem 'saviour'. More so, FTX Chief Executive Officer (CEO) Sam Bankman-Fried was an active voice that represented the nascent crypto industry at Capitol Hill while always speaking of his vision for the regulation of crypto.
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