Regulators must step in to protect crypto investors after the collapse of FTX, financial industry executives and lawmakers said at the Reuters NEXT conference this week, the latest call for tougher oversight of a sector prone to meltdowns.
Representations of cryptocurrency Bitcoin are seen in this illustration, August 10, 2022. REUTERS/Dado Ruvic/Illustration/File Photo
are expected to take effect in 2024, but the United States in particular still lacks overarching rules.was the biggest in string of big crypto-related failures this year. It sparked a cryptocurrency rout and has left an estimated 1 million creditors facing losses of billions of dollars. This extreme volatility has not done the crypto sphere any favours in terms of winning broader support in the financial services industry.CEO James Gorman said at Reuters NEXT. "I don't like investing in things that have a range of outcomes or putting clients in it."
"Now is the time for regulation to catch up and make sure that as we go forward, to have safety and soundness, but we also allow for innovation and a nimble ecosystem," Friedman said. Crypto entrepreneur Justin Sun said investors seldom have clarity on how funds at crypto companies are used.
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