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Sen. Elizabeth Warren (D-Mass.) has said the fallout of cryptocurrency exchange FTX FTT/USD shows a dire need for stringent regulations to protect consumers.
What Happened: Warren cited a Wall Street Journal report on the Security Exchange Commission launching a fresh probe into FTX. “The collapse of one of the largest crypto platforms shows how much of the industry appears to be smoke and mirrors,” she said in a tweet.
See More: How to Use Binance Smart Chain
According to Warren, the cryptocurrency industry needs more “aggressive enforcement,” stating that she is going to keep pushing the SEC “to enforce the law to protect consumers and financial stability.”
Coinbase Global Inc COIN CEO Brian Armstrong responded to Warren, saying that FTX was an offshore exchange not regulated by the SEC.
“The problem is that the SEC failed to create regulatory clarity here in the US, so many American investors (and 95% of trading activity) went offshore,” he said, adding that “punishing U.S. companies for this makes no sense.”
Meanwhile, after examining the company’s financials, Binance has walked away from acquiring FTX.
Price Action: FTX is trading at $2.48, down 52% in the last 24 hours, according to data from Benzinga Pro.
Read Next: Binance Tops Up $1 Billion SAFU Fund to Protect User Assets
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Image and article originally from www.benzinga.com. Read the original article here.