'Is there anything about crypto that is as it seems?' FTX failure threatens industry's reputation in D.C.

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The FTX drama and Democratic overperformance in midterm elections could spell trouble for the digital-assets industry

The failure of crypto exchange FTX and a midterm U.S. election that saw the more regulation-friendly Democratic Party overperform expectations could spell trouble for a digital-asset industry that was hoping for a more hospitable atmosphere in Washington D.C., experts say.

Katz added that the speed of Bankman-Fried’s downfall will cause many lawmakers to wonder “is there anything about crypto that is as it seems?” Industry representatives remain confident, however, that the FTX debacle won’t freeze legislative attempts to create a more tailored regulatory environment for the digital assets industry while protecting investors, maintaining financial stability and guarding against illicit financial activity.

Kevin Werbach, director of the Wharton School’s Blockchain and Digital Asset Project, said in an interview that the incident could also encourage regulators to pay closer attention to foreign crypto exchanges that have separate U.S. operations, or claim to service no U.S. customers, so to avoid complying with more stringent U.S. regulations.

The events also bring greater focus to the world of decentralized finance, or DeFi, where users interface with algorithms that enable them to deposit their digital assets and earn returns, borrow or loan money and even buy and sell derivatives of blue-chip equities like Apple AAPL and Tesla TSLA .

 

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Why would any self respecting Republican favor Ponzi schemes any more than a Democrat?

Pretty sure the “spelling of trouble” has already happened for the digital asset industry.

good fuck crypto

Binance needs to save Voyager !!!

Fire sale because FTX is insolvent. Whose fault?

All the coin going to zero from now

Crypto ended last November.

This made it more safer. Another actor out

And it’s exactly what DC wants. Paves the way to market a government sponsored crypto currency and tell people it’s a stablecoin.

It had the support of Sequoia who invested a $420 MM round... 😔

When you're worth billions, you should stop flipping nickels for double or nothing. Because the string of winning coin flips is bound to be followed by naive arrogance, and massive losses. Should have put half into real world conservative assets. Only nouveau riche keep gambling

Is there anything about Stock Market as it seems? No. It's a complete fraud and manipulation by big actors.

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