The Lawmakers Are Requesting The SEC Take Strict Action To Regulate The Crypto Market

The FTX breakdown created a high level of doubt and fear among crypto investors and users. Last week’s crypto market was filled with uncertainty for crypto asset prices. Investors are afraid to make a move on cryptocurrency after facing huge losses in the recent FTX collapse. So the White House is making decisions to implement strict cryptocurrency regulations in the United States.

The lawmakers of the United States are under pressure to draft clear and rigid laws that can protect future digital users from facing the difficulties that recently happened with FTX. Joe Biden told the administration that it is time to introduce cryptographic regulations in the country. He directed lawmakers to draft legislation to regulate cryptocurrency.

Recently, Brad Sherman, a US Congressman, said the SEC has to take crucial steps in implementing new guidelines for regulating cryptocurrency. He stated that “ I believe it is more important than ever that the SEC take decisive action to put an end to the regulatory gray area in which the crypto industry has operated.”

“It is crucial that we develop a clear understanding of the chain of events and management failures that led to this collapse. I fully support the efforts of US regulators and law enforcement to investigate this situation and make sure those responsible are held accountable,” Sherman added further.

Recently, Janet Yellen, US Treasury Secretary, officially stated that the country needs rigid regulations on the crypto industry. The lawmakers also accepted the idea of Janet Yellen; they said now is the time to implement new regulations on cryptocurrency.

Sherrod Brown, Chairman of the Senate Banking Committee, stated, “It is crucial that our financial watchdogs look into what led to FTX’s collapse so we can fully understand the misconduct and abuses that took place. I will continue to work with them to hold bad actors in crypto markets accountable.”

One of the major investors in FTX, Kevin O’Leary, stated that it is time to implement regulations for the cryptocurrency industry. If the administration doesn’t take any action towards crypto regulations, there is a possibility that other digital assets will face the same situation as FTX in the crypto market.

Coinbase CEO Brain Armstrong said the crypto regulation in the US plays a vital role in avoiding crypto asset breakdowns like FTX. As crypto regulation in the United States is too difficult to implement, some of the popular regulators in the country have failed to introduce new regulations on cryptocurrency.

Meanwhile, the two popular cryptocurrencies remain unaffected by FTX’s bankruptcy. Uniswap and XRP tokens are experiencing huge profits from last week. Uniswap has been trading at a high point since last Tuesday. Uniswap reached $6.45, and XRP rose by over 10%.