The FTX crash sounded the "wake-up call"! U.S. Senator: Regulatory Loopholes Need to Be Filled 'Before Next Crypto Disaster Brings Economy Down'

Abstract: U.S. Senator Elizabeth Warren of Massachusetts said the sudden collapse of FTX showed the need for proper regulation of cryptocurrencies before digital assets cause broader economic damage. In a Wall Street Journal op-ed, she wrote: "FTX's implosion should be a wake-up call. Regulators must enforce the law before more people are scammed, and Congress must fill the remaining holes in our regulatory structure -- next time." Before the cryptocurrency disaster dragged down our economy.”

#FTX破雷#Article points:
1. U.S. Senator Elizabeth Warren warned on Tuesday that the bankruptcy of FTX showed the need for cryptocurrency regulation.
2. She said: "The implosion of FTX should be a wake-up call. Regulators must enforce the law before more people are scammed."
3. Warren has criticized the use of cryptocurrencies in money laundering and their high environmental costs.
FX168 Financial News (Hong Kong) News Massachusetts Senator Elizabeth Warren (Elizabeth Warren) said that the sudden collapse of FTX shows that there is a need for proper scrutiny of cryptocurrencies before digital assets cause broader economic damage. Supervision.

Warren noted on Tuesday that financial regulators need to intervene in the space to protect retail investors. It follows the sudden collapse of Sam Bankman-Fried's exchange, which wiped at least $1.7 billion off customers' funds.
In a Wall Street Journal op-ed, she wrote: "FTX's implosion should be a wake-up call. Regulators must enforce the law before more people are scammed, and Congress must fill the remaining holes in our regulatory structure -- next time." Before the cryptocurrency disaster dragged down our economy.”
FTX filed for bankruptcy last week after rival Binance wrote down its holdings of the group's FTT tokens, triggering a solvency crisis.
FTX’s new CEO, John Ray III, stated in a Chapter 11 bankruptcy filing published on Nov. 17 that the group’s total cryptocurrency holdings are worth just $659,000, not Bankman-Free De said he was "very concerned" about their financial statements.
Warren compared last week's events to the 2008 financial crisis, saying cryptocurrencies "are following a well-worn path of financial innovations like subprime mortgages and credit default swaps, starting with stellar returns and ending with big losses."
In addition to protecting retail investors, Warren also wants to see crypto regulation combat money laundering.
According to Warren, terrorists, drug dealers, and ransomware criminals can "conceal their illicit activities by transacting billions of dollars in cryptocurrencies with total anonymity."
Warren also wants to see a reduction in the high levels of pollution in the crypto industry.
She said: “Crypto mining companies should be required to disclose their emissions and energy consumption to the public. These companies pollute and stress the grid. The Department of Energy has a way to require this information, but if it is not willing to use this information, Congress should step in. .”
U.S. regulators have been active in expressing concerns following the FTX debacle. On Nov. 21, U.S. senators sent a letter to Fidelity urging it to reconsider its bitcoin offering in light of FTX.
On November 16, Warren and Senator Richard Durbin released a letter they sent to the former and current CEO of FTX. The letter contained 13 requests for documents, lists and responses to the situation.
Warren has been a leading critic of the cryptocurrency industry for the last year. She previously called DeFi "dangerous" and has been active in exposing unsustainable practices in the U.S. cryptocurrency mining sector.

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