White House is monitoring FTX implosion, calls for more crypto regulation

The Biden administration has renewed its call for more rules around cryptocurrencies in the U.S.

“The administration has consistently maintained that without proper oversight cryptocurrencies risk harming everyday Americans,” White House Press Secretary Karine Jean-Pierre said during today’s White House press briefing. “The most recent news further underscores these concerns and highlights why prudent regulation of cryptocurrencies is indeed needed.”

Jean-Pierre did not specify what that might look like due to the legal independence of financial regulators from the White House, saying that she could not comment on, “specific actions independent regulators should or should not take on this particular issue.” But Jean-Pierre added that the White House is aware of the implosion of FTX and will “continue to monitor the situation.”

Earlier this year President Joe Biden issued an executive order calling for an examination into digital asset regulations. Subsequent reports led by the Treasury Department, Financial Stability Oversight Council — a super committee of U.S. regulators led by Treasury Secretary Janet Yellen — called for continued enforcement of current financial laws that apply to digital assets, including U.S. securities, commodity and banking regulations. One senior administration official describing the message as a call to “double down” on enforcement.  

Treasury and other regulators also asked Congress to pass new laws around digital assets, including new a comprehensive framework for stablecoins and a law to give regulators more direct oversight of crypto exchanges and markets.

FTX CEO Sam Bankman-Fried has been a supporter of some of that regulatory push — as well as a major donor to Biden in the 2020 presidential election. 

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