The United States Senate is under pressure to draft a regulatory bill on cryptocurrency. They noted that currently the crypto industry doesn’t have any proper rules or regulations on crypto assets. The three major senators of the United States, Elizabeth Warren, Tina Smith, and Richard Durbin, stated that the recent downfall of FTX is the main reason for the $4.5 trillion asset management firm to reconsider its bitcoin offerings.
“The recent implosion of FTX, a cryptocurrency exchange, has made it abundantly clear the digital asset industry has serious problems.”
Currently, Brazilian crypto advocates are arguing with the lawmakers to give final approval to the crypto bill, which was recently released by the Senate. “The rules that currently exist have not been applicable to some players, so they can do whatever they want. “The upcoming crypto law would change a lot.”
Due to the general election that was held on October 30, Brazilian administrators ignored the cryptocurrency bill. Now the administration is going to discuss the crypto bill on November 22. The crypto bill mainly focuses on the regulation of digital currency exchanges and custody agents, including detailed mining regulations. Analysts believe that this crypto bill will protect crypto users and investors from the recent massive losses at the FTX crypto exchange.
“Since July, when we last raised concerns with you about the deeply concerning prospect of exposing workplace retirement plans to Bitcoin, its value has plummeted.”
The United States regulators want to know why the FTX faced such a huge crash recently. On the basis of the sudden FTX downfall in the crypto market, US lawmakers are preparing a bill on regulating cryptocurrencies in the United States. The White House is taking steps in the crypto market to avoid a repeat of the FTX situation in the crypto market. The special panel was investigating the liquidity issues of FTX.
Senators Durbin, Smith, and Warren pointed out that 32 million Americans and 22,000 U.S. workers utilized Fidelity as a workplace retirement account and employee-sponsored plan. The Senators also added, “Since our previous letter, the digital asset industry has only grown more volatile, tumultuous, and chaotic.”
“In light of these risks and continuous warning signs, we again strongly urge Fidelity Investments to do what is best for plan sponsors and plan participants and seriously reconsider its decision to allow plan sponsors to offer Bitcoin exposure to plan participants.”
Source: https://www.thecoinrepublic.com/2022/11/22/the-ftx-crash-is-the-primary-reason-for-rethinking-its-bitcoin-offerings/