Senator Pat Toomey is sure that even the bankruptcy of FTX is not a reason to ban cryptocurrency projects
US Senator Pat Toomey said that the bankruptcy of FTX did not become a prerequisite for the collapse of the entire crypto industry, so regulators should not ban such projects. According to the politician, the actions of FTX top management are not an automatic accusation for the entire industry.
At the same time, Toomey agreed that the illegal use of client assets and defrauding investors is outrageous, but this is the responsibility of people, and not the problem of cryptocurrencies and the software on which they operate.
“The code committed no crime. FTX and cryptocurrency are not the same thing. The actions of the FTX leadership were opaque and dishonest, while cryptocurrencies are decentralized, transparent and open source,” the senator said.
The politician believes that the authorities should distinguish between crimes committed by individuals and technologies that are completely pointless to ban. The ban on cryptocurrencies will provoke an outflow of technology companies to more loyal jurisdictions.
“The financial crisis of 2008 was related to mortgage products. Have we banned mortgages? Of course not. Take even bankrupt brokerage firms that misappropriated client assets, including US dollars, to cover losses. No one said that the problem is the US dollar, and that we should ban it,” said Toomey.
The politician suggested that Congress make the regulation of digital assets more transparent in order to prevent cases like the collapse of FTX.
Meanwhile, well-known cryptocurrency trader Bobby Lee believes that the crypto market will start to grow in a year or even two.
“Most likely, growth will have to wait until the end of 2024 or the beginning of 2025. Of course, time will tell, it is now very difficult to predict and talk about when bitcoin will hit the bottom,” the analyst said.
In addition, he pointed out that after the fall of FTX, BTC performed better than other assets. Many crypto coins lost 50% of their capitalization, but the cost of bitcoin decreased by only 20%.
According to Lee, one of the “bullish signals” could be confidence in the crypto industry, and this can only come with proper market regulation. Do you agree with these conclusions?
