The dispute between Changpeng Zhao and Sam Bankman-Fried, the CEOs of the prominent crypto exchanges named Binance and FTX, has not just lowered the crypto prices nonetheless has additionally directed the attention of the regulatory bodies toward taking adequate measures to prevent analogous declines in the coming time.
Senator Lummis Calls for Transparent Crypto Regulation amid FTX-Binance Debacle
Ever since the open declaration of Zhao that Binance wishes to pull off its holdings in FTX Token (FTT), investors (who expected a price drop) started trading their holdings in the respective token while attempting to reduce the losses. After that, a straight decline of nearly eighty-six percent was witnessed in the market value of the token. This took FTT from nearly $22 to only $3.00 just in a few hours as a result.
Nonetheless, at the end of the day when the respective event occurred, Zhao declared that Binance exchange wants to obtain FTX. The CEO of FTX availed of the opportunity while referring to customer protection. Cynthia Lummis (a US Senator), while giving her remarks on the respective scenario as she is considered to be a resilient crypto believer, pointed out the requirement for transparent regulations to administer the crypto industry.
Also read:The recent episodes in the crypto world that have emerged between Binance and FTX offer the finest instance of the reason behind transparent regulations to cover the entirety of the exchanges of digital assets across the United States. Lummis referred to the Lummis-Gillibrand Responsible Financial Innovation Act’s significance. This was a bill that Senator Lummis sponsored to take digital assets to the regulatory perimeter of U.S. law.
Keeping in view the clear impact of the entrepreneurs in the crypto space in the change in crypto prices just with some Twitter posts, Lummis stressed that the main issues among many others to be faced taking into account the adequate safety of consumer funds, lending activity, and market manipulation.
CEO of FTX Suffers the Loss of His Billionaire Status
Though no statements have been made by Bankman-Fried during the previous sixteen hours, Zhao disclosed investing up to $1B worth of crypto to SAFE (the insurance fund of Binance) to regulate the latest price fluctuations. Because of the debacle of the two crypto exchange platforms, the personal wealth of Bankman-Fried fell by ninety-four percent and his billionaire status was ripped off overnight.
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