How the fall of Washington's most popular crypto billionaire will change regulation

Von Krypto News Österreich

DCS Favorite Crypto billionaire goes under

In a big setback for its regulatory future, the crypto industry has lost its probably largest and best -networked cheerleater in Washington.

ftx-CEO Sam Bankman-Fried, The With its ignorance, when it comes to formal business clothing during his congress appearances, it is proud to have been the leading voice of the industry on the Capitol Hill for some time. However, the paper turned on Tuesday, when the Krypto exchange Binance, the rival of FTX, announced that it would acquire FTX.com, subject to a DUE diligence test.

The distrust of the 30-year-old billionaire grew.

"You will not be worth $ 32 billion in one day and will be taken over by your greatest competitor without having done anything wrong," said Nic Carter, partner at Castle Island Ventures, during a Blockworks Twitter Spaces on Tuesday.

If FTX user funds were used to finance Alameda Research, Bankman-Fried's trading company, this could result in legal consequences. The takeover of Binance-which is still subject to the Due Diligence and the final conditions-does not apply to Alameda or the US branch of FTX, FTX.US.

"There is a good chance that SBF will take a little time [in Jail]," said Martin Shkreli, former hedge fund manager and convicted criminal, during an up only podcast Live transmission Tuesday.

Even without Bankman-Fried, the industry in DC is still well positioned, says Kristin Smith, managing director of the lobbyist company Blockchain Association.

"Many of us will continue the work that we have done so far ... The industry is well positioned to continue to have a voice in Washington and to be a productive partner to find the right way forward." Schmied tweeted .

Regardless of this, the crash of another top -class and generally respected name in the industry will not calm the supervisory authorities. Daryl Kelly, founder of the NTF platform Ltd.inc, opposite block works.

"Of course there were concerns about FTX and its livelihood, but this is only shown that even an apparently dominant stock exchange, which is operated by someone who was considered an industry giant a week ago, ... is not immune to the mood of what is certainly at the most volatile," said Kelly.

"How it will develop is unclear, but I can imagine that the supervisory authorities look at this situation with much greater care," he said.

However, there could still be a silver stripe on the horizon, said Ryan Rasmussen, Defi Research Analyst at Bitwise Asset Management.

"An exciting development are the changing tides, as centralized stock exchanges and lenders see transparency-Binance announced plans to publish proof-of-reserves, and Kraken already-to put their cards on the table, could have a competitive advantage," said Rasmussen.

"If FTX had proven reserves, everyone could have been trampled quickly by Binance.

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The contribution How the Fall of Washington’s Favorite Crypto Billionaire Will Change Regulation is not a financial advice.