FTX implosion has U.S. regulators on watch

U.S. regulators are monitoring the implosion of crypto exchange giant FTX, which announced earlier today that it is selling FTX.com to rival exchange Binance.

The Commodity Futures Trading Commission is watching the situation, but, “any regulatory issues right now are unclear,” spokesperson Steven Adamske told The Block. 

FTX CEO Sam Bankman-Fried had pushed for legislation to grant the CFTC more direct power over crypto markets, including direct oversight and rulemaking of any token or cryptocurrency classified as a digital commodity, as bitcoin is in the U.S. The legislation received behind-closed-doors blowback from DeFi advocates before a broader Twitter blow-up aimed at the FTX CEO over his lobbying push.

Bankman-Fried also appeared before the CFTC earlier this year to advocate for allowing his company and others like it to directly clear derivatives trades.

© 2022 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.