The recent drama around FTX shows that Congress should take action on developing a regulatory framework for crypto, said Rep. Patrick McHenry.
The North Carolina Republican is the ranking member of the House Financial Services Committee, and is poised to take the gavel of the panel if Republicans win the House, as expected, in Tuesday's 2022 midterms.
McHenry and Rep. Maxine Waters (D-Calif.), the current chair of the committee, are
"For years, I have advocated for Congress to develop a clear regulatory framework for the digital asset ecosystem, including trading platforms," he said. "The recent events show the necessity of congressional action. It's imperative that Congress establish a framework that ensures Americans have adequate protections while also allowing innovation to thrive here in the U.S. I look forward to learning more from FTX and Binance in the coming days about these events and the steps they will take to protect customers during the transition."
Earlier on Tuesday, Binance — the world's largest cryptocurrency trading platform — said it's
The deal is particularly notable in Washington and on Election Day, as FTX Chief Executive Sam Bankman-Fried has become the second-largest Democratic donor in the country, and has repeatedly pushed on Capitol Hill for crypto regulation.
"This afternoon, FTX asked for our help," Changpeng Zhao, Binance's founder, said on Twitter. He said that FTX was experiencing a "significant liquidity crunch" and noted that Binance still needs to conduct due diligence.
