What's behind the FTX US cease-and-desist order?

Explore the policy fallout from the 2022 market crash, the advance of CBDCs and more. The U.S. Federal Deposit Insurance Corp. (FDIC) published five cease-and-desist orders Friday, including one to crypto exchange FTX US, alleging they mislead investors by suggesting their accounts are insured through the government agency.

Will FTX collapse be a reason for tightening regulatory scrutiny of cryptocurrencies?

The U.S. Securities and Exchange Commission (SEC) and other regulators may see the collapse of FTX as justification for tightening regulatory scrutiny of cryptocurrencies, and Congress may be more inclined to step in and create new laws governing digital tokens and exchanges. 21

What went wrong with FTX?

Learn more about what went wrong with FTX. FTX collapsed in early November 2022 following a report by CoinDesk highlighting potential leverage and solvency concerns involving FTX-affiliated trading firm Alameda Research. FTX’s collapse shook the volatile crypto market, which lost billions at the time, falling below a $1 trillion valuation.

Will FTX deter investors?

As the largest collapse in the short history of cryptocurrencies, FTX may further deter investors, who already are cautious because of concerns about stability and security. Customers on the FTX platform may not recover their assets, potentially triggering legal action.