Americans are no longer sure they can trust cryptocurrencies after the collapse of FTX. If both retail and institutional investors had shown real interest in cryptocurrencies, the trust capital was crushed by FTX. This article aims to summarize the opposing opinions of several concerned Americans.
The renewed debate about the relevance of cryptocurrencies
The economic history of cryptocurrencies is now marred by the collapse of one of the largest exchanges: the collapse of FTX. The case took a surprising turn this week with the arrest of Sam Bankman-Fried, the former CEO of FTX. The congressional hearing to investigate how the event happened without Sam Bankman-Fried now in prison. It is clear that the audience has given very few answers. However, the hearing added fuel to the fire that is the cryptocurrency debate.
Brad Sherman is a congressman who fought to ban cryptocurrencies. Since the FTX affair, he is one of those who want to revive the debate around crypto. He says he is the only member of the House to get an F from the only cryptocurrency advocacy organization that rates members of Congress. He considers Sam Bankman-Fried not to be a big snake in the Garden of Eden, as crypto would be, but that the entire crypto community is a garden of snakes.
Crypto trader Scott Melker’s answer
For Mr. Sherman there is no reason to want another currency. According to him, the dollar is already quite strong. The existence of cryptocurrency could only be justified by the desire to escape taxes. Conversely, according to Scott Melker, Sam Bankman-Fried is a criminal and is not related to the crypto industry. It has nothing to do with actual assets or asset class. It is simply a scam. It would therefore be dishonest to claim that it is because of crypto. Nevertheless, it is clear that confidence will be difficult to rebuild in the coming months and must start with regulation. It can take years.
Some believe that the reason the trust existed in FTX in the first place was artificial. It had been engineered by the SBF and claimed to have the Commodity Futures Trading Commission behind it, which is another regulatory agency. It primarily covers commodities, but has struggled to cover cryptocurrencies as well, as it does forex.
Receive an overview of news in the world of cryptocurrencies by subscribing to our new service atdaily and weekly so you don’t miss any of the Cointribune essentials!
To the angelism of the proponents of the current monetary system, I am against DeFi, digital assets and the metaverse. Lawyer in Luxembourg, I am interested in cryptocurrency investment funds.