As the repercussions from the FTX collapse continue to ricochet throughout the industry, crypto executives and lawmakers are becoming increasingly vocal in their demands for regulation of the industry.
Recently, Maxine Waters, the chair of the US House Financial Services Committee, declared that lawmakers will conduct a hearing on FTX’s collapse on December 13 and European Central Bank (ECB) president Christine Lagarde considered supervision and regulation of cryptocurrency an “absolute necessity” for the European Union.
As reported by The Financial Times, crypto supporter United States Senator Cynthia Lummis said that the downfall of FTX should serve as a wake-up call for Congress on November 28.
The bipartisan law Senator Lummis proposed this year would have prevented the FTX collapse because authorities would be capable of determining if an exchange has gone down below the threshold in an instance.
In the meantime, Binance CEO Changpeng Zhao stated at a live on-stage presentation at the University of Nicosia as part of a Binance Meetup Nicosia that he views regulation is a means to support the industry’s development, “protect consumers”, and apply sanctions to those discovered violating the law.
According to Stephanie Link, a Chief Financial Strategist and Portfolio Manager at the investment firm Hightower Advisors, more regulation is required for the crypto industry, or otherwise, it remains “broken and irrelevant” like it is at the current time.
Following the collapse of FTX, banking and financial services company JP Morgan stated in a note dated November 24 that it expected there will be increased pressure in instituting a consistent framework.
