The head of NYSE parent company Intercontinental Exchange Inc (ICE) reportedly says that the collapse of the FTX exchange will likely have an enduring effect on how the crypto market will be regulated.
According to a new report from Reuters, ICE CEO Jeffrey Sprecher says that nearly all crypto assets will likely be regulated under US securities laws following the implosion of one of the world’s biggest crypto exchanges.
FTX filed for bankruptcy last month after traders surged to withdraw about $6 billion in just three days leaving the Bahamas-based exchange insolvent. The company’s founder and former CEO Sam Bankman Fried is facing accusations of committing fraud, including using customers’ money to fund trading firm Alameda Research.
Says Sprecher during a Goldman Sachs Group financial services conference,
“They’re going to be regulated and dealt like securities. What does that mean?
It means more transparency, it means segregated client funds, the role of the broker as a broker-dealer will be overseeing and the exchanges will be separated from the brokers. The settlement and clearing will be separated from the exchanges.”
Sprecher says creating new laws to oversee crypto trading is not necessary.
“The laws already exist and I think they’re just going to be implemented more strongly.”
Bitcoin (BTC) advocate and former Microstrategy CEO Michael Saylor echoes the view that many altcoins are securities. In an interview on the PDB Podcast, he says that leading smart contract platforms Ethereum (ETH), ETH competitor Solana (SOL) and XRP are among the cryptocurrencies being sold as unregistered securities.
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Featured Image: Shutterstock/Mia Stendal/WindAwake
