The fall of FTX continues to sink anchor and saliva in the crypto universe. Last week, the second crypto exchange in terms of transaction volume went bankrupt, bringing with it several other projects. Since this crash, several industry players have taken the floor to analyze the situation and propose solutions to avoid another similar earthquake. The latest to comment on FTX’s downfall is Brad Sherman. The congressional representative denounces the lightness of the regulations and invites crypto billionaires to increase this hitherto neglected aspect.
Could the FTX crash have been avoided?
Brad Sherman, the Democratic congressman, is known for his outspokenness. Invite to speak about the fall of the FTX exchange, he did not go through four paths. The politician thinks he knows what favors situations like the one in which the FTX platform finds itself today. He denounces the mode of operation of the platforms and the strategy adopted by the crypto billionaires. Instead of investing hundreds of millions of dollars to slow down regulationthese billionaires would benefit from increasing the framework measures for the industry.
Sherman points out that to slow down the regulation, many actors in the industry support members of the government within the framework of the campaigns and the lobbyings. Clearly, the politician instead invites crypto billionaires to invest in a increased regulationbecause it is in their interest.
Can the crypto industry remain calm after this disillusionment?
According to him, the fall of FTX is proof that the crypto industry still carries risks, he will also say to this effect that: “The sudden collapse this week of one of the world’s largest cryptocurrency companies was a dramatic demonstration of both the risks inherent in digital assets and the critical weaknesses of the industry that has grown up around them. ».
It should be recalled that last Friday, FTX filed for bankruptcy. The exchange would be in a rather problematic situation, since it is also the subject of an investigation by the American financial policeman, the SEC.
As chairman of the subcommittee on investor protection and capital markets, he demands light in the FTX insolvency case. Moreover, he gives his full support to the federal authorities. He wants everyone with a responsibility in this case to answer for their actions.
Conclusion
In short, tongues are only loosening in the incredible affair of FTX. The two bosses of the exchange would be the subject of an investigation by the SEC. It is about assessing the role that they would have played in the crash of the platform. Sherman would like the administration to toughen up the tone to better secure the assets held by the various platforms.
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