Mon 14 Nov 2022 ▪ 12:00 ▪
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The fall of FTX continues to sink again and soar into the cryptocurrency universe. Last week, the second cryptocurrency exchange in terms of transaction volume failed, bringing with it many more projects. After this incident, several industry players took the floor to analyze the situation and propose solutions to avoid another similar earthquake. The last to comment on the FTX crash is Brad Sherman. The congressional representative denounces the lightness of the regulations and invites the crypto billionaires to increase this hitherto neglected aspect.
Could the FTX crash be avoided?
Brad Sherman, the Democratic Congressman, is known for his bluntness. Invitation to talk about the fall of the FTX exchange, he has not traveled four paths. The politician believes he knows what favors situations like the one the FTX platform is in today. He denounces the methods of operation of the platforms and the strategy adopted by the crypto billionaires. Instead of investing hundreds of millions of dollars for slow down the adjustmentthese billionaires would benefit from increased framework measures for the sector.
Sherman points out that to slow down regulation, many industry players support members of the government in campaigning and lobbying. Clearly the politician instead invites crypto billionaires to invest in a more regulationbecause it is in their best interest.
Can the cryptocurrency industry remain calm after this disillusionment?
According to him, the fall of FTX is proof that the cryptocurrency industry still carries risks, he will also say in that sense that: “This week’s sudden collapse of one of the largest cryptocurrency companies in the world was a dramatic demonstration of both the risks inherent in digital assets and the critical weaknesses of the industry that has grown around them.”.
It should be remembered that FTX filed for bankruptcy on Friday. The exchange would find itself in a rather problematic situation, as it is also the subject of an investigation by the American financial policeman, the SEC.
As chair of the Subcommittee on Investor Protection and Capital Markets, he calls for light in the event of FTX insolvency. In addition, he gives his full support to the federal authorities. He wants everyone who has a responsibility in this case to be held accountable for their actions.
In short, the languages are only loosening in the incredible story of FTX. The two bosses of the exchange would be the subject of an investigation by the SEC. It is about evaluating the role who would play in the crash of the platform. Sherman would like the administration to tighten the tone to better protect the assets held by the various platforms.
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PhD student in financial law and expert SEO web editor, Cédrick Aimé is passionate about cryptocurrencies, trading, etc. Thanks to his articles he naturally participates in the daily blockchain revolution for a better democratization of DeFi.