Distributed Ledger: It’s the Wild West in crypto. Does anyone want to be sheriff?

by | Dec 1, 2022 | Stock Market

Welcome to the final month of 2022, and what a year it has been so far. This is Mark DeCambre, Editor in Chief at MarketWatch, pitching in again for our crypto reporter, Frances Yue, who will be on a much-deserved vacation for a few weeks. So, either I or Anushree Dave, our other crypto reporter, will deliver the next few installments of Distributed Ledger. Last Thursday’s edition didn’t come out due to U.S. Thanksgiving, of course, and we’re hoping you folks all had a great Turkey, or Tofurky, Day.

We also apologize for the late start to this edition but we hope you enjoy it, nonetheless. In any case, you can find Anushree at @Anu__Dave on Twitter (for as long as Twitter is a thing), and find me at @mdecambre. As always, find Frances at @FrancesYue_.

Quote of the week

“‘But looking at the current situation: We have a huge war going on, we have a huge financial crisis, we have FTX, we have Celsius, we have a lot of bear-market signals’”

Cops on the beat? If anything has been made clear by the implosion of FTX, the digital-asset platform founded by Sam Bankman-Fried, it’s that regulation is sorely lacking. As it stands now, the cops on the proverbial crypto beat are in need of clearer guidance from lawmakers. There is, indeed, appetite for consumer protections to guard against malicious actors, who intentionally (or unintentionally, if Bankman-Fried is to be believed) do harm to investors who unwittingly (or naively) place faith in crypto characters who don’t deserve it. At a Thursday Senate hearing, Commodity Futures Trading Commission Chairman Rostin Behnam said his agency didn’t possess the authority to look into much of FTX’s business, and said the CFTC didn’t receive any indication that FTX was a simmering problem. The CFTC chairman put the onus on lawmakers to come up with rules to limit conflicts of interest and commingling of crypto funds. To Benham’s point, such rules exist for traditional assets, where intermingling client and the firm funds, which FTX apparently did with loosely-affiliated hedge fund Alameda Research, are prohibited. Democratic Sen. Debbie Stabenow of Michigan, the chair of the Agriculture c …

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