JAKARTA The collapse of the US crypto trading company, FTX, prompted the US government to enforce digital asset regulations. This was shown by US senator Elizabeth Warren.
Warren recently commented on the FTX case. According to him, the situation shows that the crypto industry requires more aggressive law enforcement from the US Securities and Exchange Commission (SEC). This is intended to provide protection to consumers.
"I will continue to encourage the SEC to enforce the law to protect consumers and financial stability," he added.
Even so, the SEC as law enforcement authority for the crypto industry, has been deemed to have failed to provide clear crypto regulation, leading to US investors using crypto exchanges like FTX.
Following the crisis on the FTX cryptocurrency exchange, US Senator Elizabeth Warren (D-MA) stressed that the crypto industry needs more aggressive regulation.
The collapse of one of the largest crypto platforms shows how much industry seems to be smoke and mirrors. We need more aggressive law enforcement and I will continue to encourage the SEC to enforce the law to protect consumers and financial stability," senator Warren wrote in a recent Twitter post.
SEC fails to Give Clearness of Crypto Rules
A number of crypto communities also responded to statements from senator Warren, as did co-inbase crypto exchange founder Brian Armstrong. According to him, the SEC does not regulate the FTX crypto exchange because it is beyond the control of US regulators. Subsequently, Armstrong assessed that the SEC had failed to formulate clear rules for the crypto industry.
FTX.com is an offshore exchange that is not regulated by the SEC. The problem is that the SEC fails to create regulatory clarity here in the US, so many American investors (and 95% trading activity) go abroad. Sentencing US companies because this is absurd," said Coinbase CEO Brian Armstrong.
Several other Coinbase executives agree with Armstrong. Coinbase's chief policy chief, Faryar Shirzad, urged clear rules so that crypto industry players could follow.
Attacking American companies because of their unreasonable failures abroad. Enforcement is important, but we have to start with clear rules. That's good for markets and investors," said Shirzad.
Meanwhile, Coinbase's chief legal officer, Paul Grewal, argues that This is an American. They are left exposed on offshore exchanges that are not regulated. Shouldn't they be a priority for our government?
Furthermore, veteran trader Peter Brandt also commented on the US senator's statement. Brandt believes that the SEC has disappointed US investors.
Warren's creator, the SEC has completely disappointed US investors, not a source of regulatory clarity. Your fast bullets target the wrong entities, Brandt said.
It doesn't stop there, Circle CEO (USDC), Jeremy Allaire, also agrees with Armstrong, stating: "I'm with Brian on this. The lack of a clear and healthy regulatory framework for the US crypto market has exposed people to the control power of the Bahamas... Please Senator Warren help write good policies, don't just leave this to law enforcement."
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