Samuel Bankman-Fried and FTX collapse continues to hurt the crypto currency market.
Samuel Bankman-Fried and his company FTX haven’t had the best of weeks, with their attempts to manipulate the crypto currency markets ultimately leading to a market crash.
The move has been heavily criticized by many in the crypto community, who view it as unethical and damaging to the industry at large. It is not clear yet what the long term effects of what others in the industry are calling a scam will be, however, it is likely that prices of crypto currencies across the board will remain volatile in the near future.
It is also clear that is has set back the crypto industry’s efforts to be seen as a legitimate asset class and has dented trust in the crypto market.
Investors will now be more cautious with their investments and the reputation of crypto currency as an investment asset has been damaged. While this may not be a long term trend, it could lead to more regulation of crypto markets in the near future.
New York Attorney General Letitia James today urged congressional leaders to adopt legislation that would prohibit investing retirement funds in digital assets, such as cryptocurrencies, digital coins, and digital tokens.
This is a move to protect workers’ retirement savings from volatile and potentially fraudulent markets.
“Investing Americans’ hard-earned retirement funds in crashing cryptocurrencies could wipe away a lifetime’s worth of hard work,” said Attorney General James.
“Over and over again, we have seen the dangers and pitfalls of cryptocurrencies and the wild swings in these funds. Hardworking Americans should not have to worry about their retirement savings being wiped out due to risky bets on unstable assets like cryptocurrencies.
This serves as a reminder of the need for increased oversight and regulation in the crypto currency space. The industry is still young, and there are many challenges that need to be addressed.
“I urge Congress to take action to protect working families from having their retirement accounts dry up because of crypto investments.” said Attorney General James
Recently, major financial institution have started offering Bitcoin as an investment option on their 401(k) plans, and it is feared that other financial institutions will soon follow suit.
In light of the FTX market crash, it is essential that regulatory bodies move quickly to protect investors from fraudulent activities.
It also important for governments, financial institutions and investors to take a cautious approach towards digital assets and to strive for greater transparency in the industry.
In doing so they must not however stifle innovation and discourage genuine investors.
Only through a combination of regulation and education can the crypto currency industry be safeguarded for the future.