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Stronger oversight of cryptocurrencies is needed to prevent hurting ordinary American citizens, the White House said today, prompted by the news of FTX’s debacle.
At a Thursday press conference, White House Press Secretary Karine Jean-Pierre was asked if regulators should be taking a “harder look” at the crypto world after FTX imploded.
FTX is one of the world’s most popular digital asset exchanges but this week started to collapse after it emerged it was apparently insolvent.
Secretary Karine Jean-Pierre responded that “the most recent news further underscores these concerns and highlights why prudent regulation of cryptocurrencies is indeed needed.”
Secretary Karine Jean-Pierre added that “without proper oversight of cryptocurrencies, they risk harming everyday Americans.”
Whistleblower Edward Snowden responded on Twitter by calling the White House “opportunistic serpents.”
FTX’s fall quickly accelerated after rival Binance, the world’s biggest digital asset exchange by volume, said that it would buy FTX in a bailout—but then pulled out.
The news rocked markets, sending prices plunging as FTX users tried to cash their funds out of the exchange and make sense of how a crypto industry titan could collapse without warning. Bitcoin subsequently fell two a two-year low.
Sam Bankman-Fried, the exchange’s CEO, has since said he needs $8 billion in order to solve the crisis. The youthful billionaire—who claims to give most of his money away—apologized for his “fuck up,” admitting that he used customers’ money to fund risky bets.