<\/p>\n
Crypto executives and politicians are becoming louder in their calls for crypto regulation as the aftermath of the FTX collapse continues to reverberate through the industry.\u00a0<\/p>\n
In just the last 24 hours, the European Central Bank (ECB) president Christine Lagarde called regulation and supervision of crypto an \u201cabsolute necessity\u201d for the European Union, while United States House Financial Services Committee Chair Maxine Waters announced that lawmakers will explore the collapse of FTX in a Dec. 13 inquiry. <\/p>\n
On Nov. 28, United States Senator and crypto supporter Cynthia Lummis described the collapse of FTX as a wake-up call for congress, according to The Financial Times.\u00a0<\/p>\n
During an interview at the Financial Times\u2019 Crypto and Digital Assets Summit, Lummis said the bipartisan bill she introduced this year would have prevented the FTX collapse as regulators would be able to see if an exchange fell below the threshold \u201cImmediately.\u201d <\/p>\n
\u201cThose are things that had they been in place for FTX, would have set off alarm bells, that would have created regulatory enforcement actions and reviews by federal regulatory agencies,\u201d she explained.<\/p>\n
Meanwhile, in an on-stage talk at the University of Nicosia as part of a Binance Meetup Nicosia, Binance CEO Changpeng Zhao said he believes regulation is a way to help the industry develop, \u201cprotect consumers\u201d and apply consequences to those caught breaking the law.<\/p>\n
Stephanie Link a Chief Investment Strategist and Portfolio Manager at investment advisor Hightower Advisors, has called for more regulation as well, stating crypto is \u201cBroken and irrelevant\u201d until there is regulation. <\/p>\n
\nWhy do we continue to discuss crypto? Broken and Irrelevant. Until there is regulation.<\/p>\n
\u2014 Stephanie Link (@Stephanie_Link) November 27, 2022<\/a><\/p><\/blockquote>\n
Tom Dunleavy, a senior research analyst from crypto analytics firm Messari gave similar pro-regulation sentiment in a Nov. 28 post on Twitter, noting that\u00a0clearer regulation around crypto will pave the way \u201cfor massive flows\u201d of new investors.<\/p>\n
\nThe biggest concern institutional investors have with investing in crypto is the uncertain regulatory environment <\/p>\n
Clearer regulation paves the way for massive flows pic.twitter.com\/2zBsi4AAXA<\/a><\/p>\n