Definitely, not a good time for FTX crypto exchange as the California Department of Financial Protection and Innovation (DFPI) joins other financial regulators to launch an investigation into the “apparent failure” of the exchange.
According to California regulators, the DFPI takes this supervisory duty “extremely seriously” and requires all organizations providing financial services in the state to abide by local financial rules. Additionally, it urged everyone in the state who has been impacted by the ongoing FTX controversy to contact a special hotline.
FTX asserts its U.S. branch is not involved in the occurrences, although the state of California is one of many governmental entities in the United States to lately speak out on the topic.
The founder of FTX, Sam Bankman-Fried, tweeted a 22-tweet thread in which he repeatedly emphasized that FTX U.S. is distinct from the foreign company experiencing difficulties.
On Nov. 10, FTX U.S. made the announcement that it would stop trading on the platform soon. On the American website, it is now written that “withdrawals are and will stay open.”
Reps. call for stricter regulations for crypto business
The chair of the Financial Services Committee of the US House of Representatives, Maxine Waters, advocated for stricter industry rules on November 10 and emphasized that FTX tokens are “worthless” and its customers are in the dark.
The administration will “closely watch” activity in the cryptocurrency field, according to a statement made by White House press secretary Karine Jean-Pierre on the same day. Additionally, “recent news” highlights the necessity of “prudent regulation” of cryptocurrencies.
The incident was also mentioned by U.S. Senators Debbie Stabenow and John Boozman, who reaffirmed their commitment to completing and releasing an upcoming crypto bill in light of the news.
FTX U.S. left the Crypto Council for Innovation in the midst of all of this.