White House Calls for More Crypto Regulation Amid FTX Collapse

During a press conference on Thursday, White House press secretary Karine Jean-Pierre stated that the Biden administration “has consistently maintained that without proper oversight of cryptocurrencies, they risk harming Americans.” common”.

Mayor Bloomberg | fake images

Founder and CEO of FTX, Sam Bankman-Fried

The White House’s stance on crypto regulation comes during a particularly turbulent time for the digital currency, as the FTX cryptocurrency crash unfolded earlier this week.

Related: ‘Sorry. That’s the biggest. Sam Bankman-Fried and Cryptoworld Lose Big in FTX Meltdown, Company Files for Bankruptcy.

“The most recent news further underscores these concerns and highlights why prudent regulation of cryptocurrencies is needed,” Jean-Pierre stated.

As FTX faces bankruptcy, the firm and its founder, Sam Bankman-Fried, are under an extensive investigation into whether customer money was mishandled, Bloomberg reported. The investigation is looking into the possibility that Bankman-Fried may have carried out a Bernie Madoff-like Ponzi scheme by funneling customer deposits into his hedge fund.

Related: Kevin Bacon Admits He Lost ‘Most’ Of His Net Worth In Bernie Madoff’s ‘Too Good To Be True’ Ponzi Scheme

The ramifications for investors could be catastrophic, which is why the White House is determined to tighten regulations and oversight to prevent another FTX collapse in the future.

Bankman-Fried took to Twitter to address the controversy, writing “I screwed up, and I should have done better,” before launching a 22-part thread that concluded with “I sincerely apologize. We’ll continue to share updates as we get them.”

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