White House: Recent Crypto Crash ‘Further Highlights’ Need for Careful Regulation of Digital Asset Space

The White House weighs in on the recent crypto crisis with pro-regulatory comments during a recent press briefing.

On Thursday, White House Press Secretary Karine Jean-Pierre answered questions about US President Joe Biden’s administration’s approach to the crypto sector amid FTX’s highly publicized collapse. this week.

“I am unable to comment on specific actions that independent regulators should or should not take on this particular issue, but what I can say is that the administration is aware of recent developments on this matter and we will just continue to monitor the situation…

The administration has…consistently maintained that without proper oversight, cryptocurrencies risk harming ordinary Americans, so this is something we are clearly monitoring and viewing as a significant issue. But the most recent news highlights these concerns further and highlights why careful regulation of cryptocurrencies is indeed necessary. The White House and relevant agencies will, once again, closely monitor the situation as it develops.

Gary Gensler, chairman of the Securities and Exchange Commission (SEC), told CNBC on Thursday that the crypto industry is largely non-compliant with existing regulations.

“It’s a very interconnected world in crypto with a few concentrated players in the middle and one of those concentrated players would have the toxic combinations of lack of disclosure, customer money, lots of leverage, which means borrow and then try to invest with that. And then when the markets turned against him, it seemed like a lot of customers lost money and that’s where our mission is, it’s about those customers.

Bloomberg News previously reported that the SEC began investigating FTX’s US arm, FTX US, “months ago”.

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