Ron Wyden, Chairman of the US Senate Finance Committee, asked leading exchanges, especially Binance and Coinbase, for detailed explanations on their operating systems and the way they manage customer funds.
Senator Ron Wyden after FTX collapse How cryptocurrency exchanges work He rolled up his sleeves to get more information about it. Senator’s request Binance and coinbase It included the financial data of leading exchanges, in particular, and details on how they manage client funds. Among the exchanges Wyden requested information on Bitfinex, Gemini, Kraken and in Kucoin took place.
The letters sent to these exchanges under the leadership of Wyden also anti-money laundering compliance and controls against digital asset market manipulation More information was requested about Seeing these documents as necessary and vital, Wyden also signaled that it was too late to request them:
As Congress evaluates much-needed regulation for the crypto industry, I will focus on banks, credit unions, and securities brokers’ clear need for consumer protections in line with long-standing safeguards for their clients. If these protections had been in place prior to the failure of FTX, far fewer retail investors would face immediate financial losses today.
After the FTX crash Binance Although the stock markets, especially the stock exchanges, have turned to proof of reserve, many of the leading stock exchanges of the market have not yet taken a clear step in this regard. According to CoinMarketCap data, only one of the three largest exchanges in the industry While Binance was able to verify its reservesranked second coinbase and third Kraken if has yet made proof of reserve not.