US lawmakers call for strict regulations!
After a week of many different dynamics happening in both crypto market and dollar, US lawmakers call for more regulations
Stocks in the US hit their best weekly performance since June last week. The dollar was weak for the fourth week in a row and recorded the longest streak since March 2020. However, in the crypto market, massive sales continued into the weekend after Bankman-Fried's crypto empire filed for bankruptcy.
FTX's withdrawal of $600 million from crypto wallets worsened the situation over the weekend. After a review of the FTX balance sheet revealed that users will likely receive less than 5 cents per dollar. As the size of the damage chart emerged, the shocks to the cryptocurrency markets were also great, with Bitcoin falling rapidly below the $16 thousand level and Etherum testing the $ 1,100 support. Funding rates on centralized exchanges for both Bitcoin and Ethereum in the derivatives market plunged into negative territory as extreme fear gripped the market. In the options market, volatility will likely remain high, presenting the risk of further bounce in the low liquidity market.
US lawmakers call for strict regulations!
The collapse of Bankman-Fried's crypto empire is likely to have a lasting impact on the industry in terms of increased regulatory pressure. Numerous US lawmakers view the pandemic as proof of calling for tighter regulatory oversight of the crypto industry. Early in the turmoil, Congressman Patrick McHenry, the senior Republican on the House Financial Services Committee, issued a statement emphasizing the need for Congressional action to ensure adequate customer protection. Congressman Brad Sherman is the latest politician to join the chorus of advocacy for increased regulation. It also warns that billions of political donations by "billionaire crypto bros" may have deterred meaningful legislation.
