Protecting depositors' stablecoin holdings could be the difference between providing the economy with a new boost and creating unnecessary drag.

Lawmakers appeared to support strengthening a bill to give the Commodity Futures Trading Commission authority over crypto derivatives.

The New York financial regulator said the move would help the agency ensure customer protections are in place in the volatile crypto market.

FTX's previously unknown ties to the banking system have raised questions about crypto's reach in traditional finance.

Dianne Dobbeck, head of the Federal Reserve Bank of New York's supervision group, said the banking system is sound, but potentially destabilizing risks must be monitored and addressed.

Mystery continues to shroud the missing billions at the bankrupt crypto exchange FTX after its disgraced founder Sam Bankman-Fried denied trying to perpetrate a fraud while admitting to grievous managerial errors.

Federal Reserve Gov. Lisa Cook said recent events show that existing regulation and supervision tools are already well suited for safeguarding banks from the risks of digital assets.

Some respected financial industry participants had connections with the cryptocurrency exchange and are coping with the fallout alongside thousands of investors and backers.

LedgerX — one of the few corners of Sam Bankman-Fried's crumbled crypto empire that remain solvent — is preparing to make available $175 million for use in FTX's bankruptcy proceedings, according to people with knowledge of the matter.

In a letter to Treasury Secretary Janet Yellen, Sen. Sherrod Brown, D-Ohio, said regulators should have supervisory authority over crypto activity.