The White House announced today that due to news of the FTX bankruptcy, stronger oversight of cryptocurrencies is necessary to prevent harm to ordinary American citizens.
At a press conference on Thursday, White House Press Secretary Karine Jean-Pierre was asked if lawmakers should take a “closer look” at the cryptocurrency world after the FTX crash.
FTX is one of the most popular digital asset exchanges in the world, but this week it began to fall after apparently going bankrupt.
Secretary Karine Jean-Pierre responded that “recent news further underscores these concerns and shows why prudent regulation of cryptocurrencies is in fact needed.”
Secretary Karine Jean-Pierre added that “without proper oversight of cryptocurrencies, they risk harming everyday Americans.”
Whistleblower Edward Snowden called the White House “opportunistic serpents” on Twitter.
FTX’s fall rapidly accelerated after rival Binance, the world’s largest digital asset exchange by volume, said it would purchase FTX in a bailout -but then pulled out.
The news rocked markets, and sent prices plummeting as FTX users tried to cash out their funds of the exchange and understand how a crypto industry titan could collapse unexpectedly. Bitcoin subsequently fell twice to two-year lows.
Sam Bankman-Fried, the exchange’s CEO, has since said he needs $8 b to resolve the crisis. The young billionaire – who claims he gives away most of his money – apologized for his “damnness” and admitted he used customers’ money to fund risky bets.