Congress is scrambling for a response to the calamitous collapse of the FTX cryptocurrency exchange, with some in Washington seeking greater regulatory oversight of the digital markets.
FTX’s collapse and the resignation of its founder, Sam Bankman-Fried, left customers scrambling to recover their money and sparked a flurry of congressional statements and plans to hold hearings on the debacle. Now, lawmakers must figure out what to do.
“I think the inaction of Congress, and the inconsistency and confusion of regulators, has contributed to this problem,” retiring Sen. Pat Toomey, Pennsylvania Republican, told National Public Radio.
The head of the Securities and Exchange Commission has said cryptocurrencies should be subject to the same rules as other securities and that customers should get more information about the risks tied to them.
Sen. Debbie Stabenow, Michigan Democrat, and Sen. John Boozman, Arkansas Republican, plan to hold a hearing on a congressional response and have sponsored the Digital Commodities Consumer Protection Act to increase regulatory oversight of the crypto market at the Commodity Futures Trading Commission.
For now, regulators are trying to work with laws that are on the books.
However, NPR reports many crypto entities haven’t registered with the government despite pleas from regulators.