Share this article
Crypto Execs Ask for Clearer US Regulatory Policy After FTX Collapse
The CEOs of Coinbase, Ripple and Circle called for clearer policy framework in a tweet thread started by Sen. Elizabeth Warren.
Updated Nov 10, 2022, 3:55 p.m. Published Nov 10, 2022, 6:37 a.m.
The CEOs of Coinbase (COIN), Ripple and Circle said that a lack of a clear framework from regulators was the reason why most of the crypto trading in the U.S. occurs on offshore exchanges – like the now-struggling FTX.
Replying to a tweet by Sen. Elizabeth Warren (D-Mass.) on the collapse of crypto exchange FTX, Coinbase CEO Brian Armstrong said that FTX was not registered in the U.S. Armstrong added that a lack of clarity from the Securities and Exchange Commission is the reason most U.S. trading activity occurred offshore.
STORY CONTINUES BELOW
Backing Armstrong, Ripple CEO Brad Garlinghouse pointed to the regulatory framework in Singapore as an example.
"Brian is right – to protect consumers, we need regulatory guidance for companies that ensures trust and transparency. There's a reason why most crypto trading is offshore – companies have 0 guidance on how to comply here in the US," Garlinghouse said.
"Compare that with Singapore which has a licensing framework, token taxonomy laid out, and much more. They can appropriately regulate crypto b/c they've done the work to define what 'good' looks like, and know all tokens aren’t securities (despite what Chair Gensler insists)," he added.
Circle CEO Jeremy Allaire also backed Armstrong and added that lack of a proper regulatory framework in the U.S. has left users exposed to the overseas supervisory structure.
In a separate thread Kraken co-founder Jesse Powell echoed the opinions of his peers.
"U.S. lawmakers and regulators have some accountability too. You drove this business offshore because you refused to provide a workable regime under which these services could be offered in a supervised manner. Enforcement wrongfully focuses on convenient, on-shore good actors," Powell added.
The unprecedented collapse of industry heavyweight FTX and its once beloved founder Sam Bankman-Fried has pushed regulators into overdrive, with FTX facing probes from both the Justice department and the SEC.
When asked in September if the SEC would be more proactive in its regulation of crypto exchanges by CoinDesk, SEC Chair Gary Gensler deflected the question.
Read more: FTX Faces US Justice Department Probe: WSJ
UPDATE (Nov. 11, 09:42 UTC): Adds comment from Kraken's Jesse Powell.
More For You
What to know:
- As of October 2025, GoPlus has generated $4.7M in total revenue across its product lines. The GoPlus App is the primary revenue driver, contributing $2.5M (approx. 53%), followed by the SafeToken Protocol at $1.7M.
- GoPlus Intelligence's Token Security API averaged 717 million monthly calls year-to-date in 2025 , with a peak of nearly 1 billion calls in February 2025. Total blockchain-level requests, including transaction simulations, averaged an additional 350 million per month.
- Since its January 2025 launch , the $GPS token has registered over $5B in total spot volume and $10B in derivatives volume in 2025. Monthly spot volume peaked in March 2025 at over $1.1B , while derivatives volume peaked the same month at over $4B.
More For You
Canadian Province Wins Forfeiture of $1M QuadrigaCX Co-Founder's Cash, Gold via Default Judgment
The ruling transfers cash, gold bars, watches, and jewelry seized from a CIBC safety deposit box and bank account into government hands after Patryn did not defend the case.
What to know:
- The Supreme Court of British Columbia has forfeited $1 million in cash and gold tied to QuadrigaCX's co-founder, Michael Patryn, to the government.
- Patryn did not contest the forfeiture, which involved 45 gold bars, luxury watches, and over $250,000 in cash seized under an Unexplained Wealth Order.
- The forfeiture may lead to a process determining if any assets can be directed to QuadrigaCX's creditors, who received 13 cents on the dollar in the bankruptcy settlement.
Top Stories
