American Senator Seeks Answers

U.S. Senator Ron Wyden (D-Ore.) sent written requests to major crypto exchanges asking for contingency plans on how they plan to protect customers amidst financial calamity.

The FTX fallout continues, and regulators in Washington, DC, are zeroing in on other major exchanges. Sen. Wyden, leader of the Senate Finance Committee,  directed his requests to Binance, Coinbase, Kraken, and others. 

Senator Wyden hopes the exchanges will open their books and reveal industry practices to help fit existing consumer protections over the crypto industry. 

"If these protections had been in place before the failure of FTX,” Wyden was quoted as saying in the Washington Post, “far fewer retail investors would be facing precipitous financial harm today.”

Retail is the key word here. I’m sure Wyden is getting calls about lost investments and his constituents – read corporations – want answers.

Wyden's request is just the latest amidst a more assertive approach and heightened radars toward the crypto industry from regulators. Several Congressional committee meetings are planned over the next few weeks. The Senate Agriculture Committee is set to host Rostin Behnam, the chairman of the Commodity Futures Trading Commission, while the House Financial Services Committee has invited disgraced FTX Co-Founder Sam Bankman-Fried to answer questions.