- Ripple policy lead said that the FTX crash is a huge blow to the crypto sector.
- He said that the sector needs legislation that can increase confidence in the crypto sector.
Ripple’s APAC (Asia Pacific) policy director said that the collapse of FTX is exactly why crypto needs to move away from the hype cycle and towards real utility. He also described that the FTX fall is incredible damage for the crypto space, but it says that the industry should stand and test the time if its focus shifts towards the real utility.
In a statement to Cointelegraph, Ripple APAC policy director Rahul Advani stated that the FTX incident will lead to greater scrutiny on crypto rules, while governments will re-evaluate their stand towards crypto and blockchain technology. He also added that The collapse of FTX is incredibly damaging for the crypto space and once again underscores the need for greater regulatory clarity.
Ripple APAC Policy Director on FTX Fall
Advani said that the sector will require forward-thinking and adaptable laws to boost confidence in the crypto sector while protecting consumers.
He stated that
“These policies must implement consumer protection measures while also recognizing the many dangers posed by business-facing crypto firms.”
He continued, What we don’t want to see is a knee-jerk response that might affect technical aspects inside the sector. After FTX’s demise, several regulators around the world resolved to focus on creating more strict crypto regulation.
Meanwhile, US Commodity Futures Trading Commission (CFTC) commissioner Summer Mersinger stated on Nov 18 that the time to act on crypto regulation may have arrived, leading experts to warn that crypto is in the crosshairs of US lawmakers.
Advani, on the other hand, stated that a one-size-fits-all approach to regulation will not work due to the different risk profiles provided by cryptocurrency firms. Instead, he urged for a risk-based approach to industry regulation. He further said that the risks posed by cryptocurrency businesses include behavior obligations such as segregating company accounts, declaring conflicts of interest, and giving retail investors safeguards.