White House plans to tighten regulation of cryptocurrencies due to FTX crash

The White House wants to introduce enhanced supervision over cryptocurrencies, Karin Jean-Pierre, the press secretary of the US presidential administration, said at a press conference. «The White House has consistently argued that without proper oversight of cryptocurrencies, they risk harming ordinary Americans,» Jean-Pierre said. Back in February, the Senate and the Biden administration announced that they are trying to create a new regulatory structure for digital currencies, and the Securities and Exchange Commission (SEC) is actively involved in projects aimed at strengthening regulatory control over digital assets.

Debbie Stabenow, Chairwoman of the US Senate Agriculture Committee, emphasized that Congress should pass a law on cryptocurrency regulation as soon as possible, all because of the collapse of the FTX cryptocurrency exchange.

«It's time for Congress to act. Thecommittee remains committed to advancing the Digital Consumer Protection Act to provide necessary safeguards in the cryptocurrency market,» the official said.

Stabenow added that she is working with the Commission’s top Republican, John Boozman, financial regulators, and other policymakers to «finalize and prepare the legislation for a vote in the Committee.»

Yesterday, on November 10, Senate Banking Committee Chairman Sherrod Brown said it was crucial that US financial agencies investigate what factors led to the FTX collapse.

«It is extremely important that our financial supervisory agencies investigate what led to the FTX collapse. Then we can fully understand the abuse and misconduct that took place here,» the Democratic senator said. «I am asking for the best solution to protect consumers, the stability of the markets and the U.S. banking system.»

Earlier, we reported that the US Securities and Exchange Commission (SEC) is thoroughly reviewing the actions of Сем Бенкман-Фрід" href="https://noworries.media/biography/sem-benkman-frid/" data-bio-id="3697″ data-wpel-link="internal">Sam Bankman-Fried, which provoked a liquidity crisis at FTX.com. The SEC emphasized that the inspection does not mean that the head of the crypto exchange or other FTX employees are necessarily accused of illegal actions.