White House says 'prudent regulation of cryptocurrencies' is needed, hinting at situation with FTX

Published at: Nov. 10, 2022

The White House said the Biden administration was monitoring the situation with the recent crypto market crash but deferred to independent regulators for any potential enforcement actions.

In a Nov. 10 press briefing, White House Press Secretary Karine Jean-Pierre said United States President Joe Biden was aware of the ongoing situation with the crypto market, hinting at FTX's liquidity crisis. According to the press secretary, the administration and financial agencies will “closely monitor” developments.

“The administration [...] has consistently maintained that without proper oversight, cryptocurrencies risk harming everyday Americans,” said Jean-Pierre. “The most recent news further underscores these concerns and highlights why prudent regulation of cryptocurrencies is indeed needed.”

The statement from the executive branch was the latest response in a string of reactions from financial regulators and lawmakers in the United States. House Financial Services Committee chair Maxine Waters pushed for additional federal oversight of crypto trading platforms and consumer protection amid FTX facing liquidity issues on Nov. 10, and Representative Tom Emmer accused Securities and Exchange Commission chair Gary Gensler of working with FTX CEO Sam Bankman-Fried to establish a “regulatory monopoly.”

Related: White House publishes ‘first-ever’ comprehensive framework for crypto

In March, President Biden signed an executive order aimed at establishing a framework on digital assets in the United States. Government departments have subsequently released reports in accordance with the order, including Treasury on the potential opportunities and risks of digital assets, recommending research into stablecoins and a central bank digital currency.

Bankman-Fried reportedly donated more than $5 million to then-presidential candidate Biden in the 2020 election.

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