Senator Cynthia Lummis is calling for regulating the cryptocurrency market and making it safe. This reaction is the aftermath of the events that took place between the CEOs of the two big crypto exchanges – FTX and Binance.
The need to react for regulators
Known for her passion for the cryptocurrency market, Senator Cynthia Lummis decided to address current events and draw attention to the need to establish clear market rules. Her reaction is a response to the situation that took place between the CEOs of cryptocurrency exchanges FTX and Binance – Sam Bankman-Fried and Changpeng Zhao.
Recall that the CEO of the Binance exchange, in response to a Whale Alert report on a large FTT transfer to the exchange, said that these funds belonged to Binance, and the exchange intended to liquidate them. This was an expression of distrust in Sam Bankman-Fried and his management of the FTX exchange’s funds. We are talking about 30 million tokens, worth nearly $585 million at the time.
The move triggered a flurry of reactions from other market participants, who, fearing a collapse in the price of the cryptocurrency, decided to sell their funds as well. As a result, in just two days the price of FTT fell from around $22, to less than $3, losing 86% of its value in the process.
Senator Lummis has no illusions
Senator Lummis, to the current information, decided to address in her social media. As she writes:
“The recent events that have swept between FTX and Binance are the clearest example yet of why we need clear rules of the road for digital asset exchanges in the United States.”
Continuing she emphasized a framework for action:
“Market manipulation, lending activities, and whether client funds and assets were adequately safeguarded are just a few of the many issues my colleagues and I must consider in the coming days.”
With that, the Senator pointed to the Lummis-Gillibrand Responsible Financial Innovation Act, the main purpose of which is to draw attention to the need to regulate the market and finalize it.
Bankman-Fried loses billions
The current market situation is particularly difficult for many investors. Meanwhile, Forbes journalists, who regularly conduct rankings of the world’s richest people, have noted how quickly the FTX CEO’s wealth is melting away. As they report, his net worth dropped by 94% almost overnight. This rapid movement has even led to Bankman-Fried losing his billionaire status.