Senator Pat Toomey: “The collapse of FTX does not mean the defeat of the entire cryptocurrency industry”

Pennsylvania Senator Pat Toomey said that the collapse of the FTX cryptocurrency exchange does not mean the defeat of the entire digital asset industry, so regulators should not impose a ban on them. Speaking before the US Senate Banking Committee, Pat Toomey acknowledged that the situation with the FTX exchange was one of the turning points in the history of cryptocurrencies, which attracted the attention of regulators from around the world.. Many believe that due to the FTX fiasco, the US Securities and Exchange Commission (SEC) may completely ban crypto assets. However, Senator Toomey does not share this opinion. He clarified that the misconduct of FTX management should not be an indictment for the entire industry.. According to him, the unauthorized use of client assets and defrauding investors is outrageous and unacceptable.. However, we are talking about the mishandling of crypto assets, so you cannot attribute what happened to cryptocurrencies and the software on the basis of which they function. “Program code did not commit crimes. FTX and cryptocurrencies are not the same. The actions of the FTX leadership were opaque and dishonest, while cryptocurrencies are decentralized, transparent and open source,” Toomey said. The senator added that lawmakers need to understand the difference between wrongdoing committed by individuals and innovative technology that would be pointless to ban.. According to Toomey, those who propose to ban cryptocurrencies are deeply mistaken. He compared such proposals to “draconian measures” involving severe punishment.. They will only lead to technology companies moving to other jurisdictions. “The financial crisis of 2008 was related to mortgage products. Have we banned mortgages? Of course not. Take even bankrupt brokerage firms that misappropriated client assets, including US dollars, to cover losses. No one said that the problem was the US dollar, and that we should ban it, ”reasons Toomey. Therefore, the politician suggested that Congress not impose bans on cryptocurrencies, but provide greater clarity in their regulation in order to avoid incidents like FTX. This will allow people to trade on regulated cryptocurrency marketplaces and provide credibility to the industry, Toomey said. Last week, the senator introduced a bill to regulate stablecoin issuers. Toomey believes that stable cryptocurrencies can dramatically change the payments industry.