Many market participants are unperturbed about the long-term health of the sector and think that legal frameworks will restore trust in the industry.
According to the general counsel member at Bitwise Asset Management, there will be a recovery of the digital currency. This isn't the end of the world.
It is worth taking a look at the future given the belief that it is still here. After the FTX collapse, questions were raised about the future of the industry.
“There’s no impetus for regulators to reduce their level of enforcement activity and recent events are likely to embolden them.” Mayer Brown's Joe Castelluccio
The implosion of FTX is hard to overstate, according to Yesha Yadav, professor of law and director of diversity, equity and community at the university. FTX was seen as one of the most compliance-friendly institutions in theCrypto economy and one that would be leading the regulatory efforts.
FTX is the epitome of everything that could go wrong. Regulators will go back to the drawing board. They may have to do something different, more far-reaching and strict.
We don't know what to expect from regulators in the years to come.
According to the partner and global legislative and regulatory risk leader at Guidehouse, regulators will finish some of the proposals. There is a realization that the industry is too large to wait and see.
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