White House, US Senators Call for Proper Crypto Oversight

The White House and members of the U.S. Senate Banking Committee have called for proper cryptocurrency regulation following the collapse of crypto exchange FTX. “Without proper oversight of cryptocurrencies, they risk harming everyday Americans, and this is something that clearly we monitor and we see as an important issue,” said White House press secretary Karine Jean-Pierre.

Following the collapse of cryptocurrency exchange FTX, the White House and several U.S. lawmakers have called for stricter crypto regulation.

White House press secretary Karine Jean-Pierre said at a press briefing Thursday in response to the FTX crisis:

The administration has consistently maintained that without proper oversight of cryptocurrencies, they risk harming everyday Americans, and this is something that clearly we monitor and we see as an important issue.

She added: “The most recent news further underscores these concerns and highlights why prudent regulation of cryptocurrencies is indeed needed. The White House, along with the relevant agencies, will again closely monitor the situation as it develops.”

The Twitter account for Senate Banking and Housing Democrats tweeted Thursday:

The cryptocurrency market’s continued turmoil is why we must think carefully about how to regulate cryptocurrencies and their role in our economy. It is crucial that our financial watchdogs look into what led to FTX’s collapse so we can fully understand the misconduct and abuses that took place.

U.S. Senator Sherrod Brown (D-OH), chairman of the Senate Banking and Housing Committee, also released a statement Thursday regarding the crisis surrounding FTX.

“The recent collapse of FTX is a loud warning bell that cryptocurrencies can fail, and just like we saw with over-the-counter derivatives that led to a financial crisis, these failures can have a ripple effect on consumers and other parts of our financial system,” the senator said. “I will continue to work with them to hold bad actors in crypto markets accountable. I’m committed to finding the best path forward to protect consumers and the stability of the U.S. markets and banking system.”

Another member of the Senate Banking and Housing Committee, Senator Elizabeth Warren (D-MA), said Wednesday that crypto needs “more aggressive enforcement,” adding that she is going to “keep pushing” the Securities and Exchange Commission (SEC) to “enforce the law to protect consumers and financial stability.”

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