SEC Member Evaluates FTX’s Collapse: “On the Positive Side…”

Cryptocurrency The collapse of exchange FTX and the ensuing bankruptcy filing had a lot of negative impact on the crypto industry.

SEC Member Peirce: “After FTX’s Collapse, the Catalyst Required for U.S. Authorities to Regulate”

Hester M. Peirce, a commissioner at the Securities and Exchange Commission (SEC), said it might just be the wake-up call US lawmakers need.

Minutes before Bahamas-based FTX announced it was filing for Chapter 11 bankruptcy protection in the US, Peirce said that despite a dark moment for the industry, the collapse of FTX could be the “catalyst” needed for government agencies to sit down and establish clear regulations.

“It’s not just about sanctioning, but we also need to know how we want to regulate this thing, thinking about it as a society,” Peirce said. said.

Peirce said that difficulties with the regulation of digital assets could be addressed more efficiently and effectively if the SEC and the Futures Trading Commission (CFTC) somehow coordinated.

In the past, former CFTC Chairman Timothy Massad has expressed his support for a self-regulatory agency (SRO) overseen by both the CFTC and the SEC.

“SEC and CFTC Should Work Together”

“It makes a lot of sense for the SEC and the CFTC to work together,” Peirce said. Even before Congress takes action, we can do a lot of collaborative work and get public opinion.” said.

Peirce did not specify which agency should be responsible for regulating the crypto industry, adding that “having a crypto-specific regulator can be problematic.” However, he suggested that crypto and the underlying blockchain technology that powers it could be “integrated into the back end of the financial system,” thus requiring the SEC’s jurisdiction.

“If we take action, the SEC will be a good regulator for spot crypto markets,” Peirce said.

*Not investment advice.