The FTX drama has had a lot of effects on the crypto market. Ripple’s policy director, Rahul Advani, calls the situation “incredibly damaging” and that the industry now faces a major challenge. Advani made this known in a response to Cointelegraph.
‘FTX collapse highlights need for bitcoin regulation’
The confidence of many investors has been damaged by the collapse of FTX. And this then has the effect that the entire crypto market takes a dent. Clear laws and regulations could provide a solution, says Advani:
“The collapse of FTX is incredibly damaging to the crypto space and once again underscores the need for greater regulatory clarity.”
According to the director of Ripple, the company behind XRP, this regulation should mainly focus on protecting consumers. “We don’t want to see a sudden reaction that could inhibit innovation.” In addition, the sector itself will now have to focus on providing “real usability.”
Many parties are calling for more regulation. For example, in the crypto news you could read that the International Monetary Fund (IMF) wants to see more regulation in Africa.
Ripple in trouble due to unclear regulations
Ripple is a company that itself is in trouble due to the missing or unclear regulations. The US Securities and Exchange Commission (SEC) considers XRP to be a security. It sued Ripple for this, a lawsuit that is still pending.
The outcome of this lawsuit is crucial to Ripple’s survival. If the SEC is right, the company will have to close its doors in the United States. If Ripple wins, this also offers clarity to other companies in the US.
The latest XRP news stated that Ripple receives a lot of support from parties outside the case. In so-called amicus briefs these companies express their support for the company. The court will take these statements of support into account in its judgment.
