Senator Toomey criticized the US Congress’ slow process on crypto regulations.
Pat Toomey expressed the SEC’s hostility to the industry, the lack of transparency and legal uncertainty as the main cause of the troubles.
Senator Toomey Speaks of the Importance of Regulations
Toomey, in his statement, stated that Congress has been slow on crypto.
Also referring to the collapse of FTX, Toomey said:
“These failures have driven the development of the crypto industry to foreign jurisdictions with little or no regulation.”
Toomey emphasized that if there were reasonable regulation for digital assets, the impact of the bankruptcy on Americans would be less.
Toomey’s comments came after FTX, the world’s second largest cryptocurrency exchange, declared bankruptcy. Struggling with a major liquidity crisis, the stock market declared bankruptcy when it could not find the support it expected. Its biggest competitor, Binance, wanted to buy FTX in the first place, but later gave up on it due to bad financial statements.
FTX, FTX US, and Alameda Research have filed for Chapter 11 bankruptcy due to an $8 billion deficit.
FTX CEO Sam Bankman-Fried was working with the US Senate to create crypto regulations.
