U.S. Senator Pat Toomey states that people can distinguish legitimate and creative cryptocurrencies from FTX’s unlawful activity. He emphasized that the demise of FTX did not constitute a condemnation of Crypto. If Congress sought to outlaw cryptocurrencies, the tech would shift overseas. In his opening remarks, U.S. Senator Pat Toomey clarified that the failure of FTX crypto exchange is not a condemnation of cryptocurrencies. Senator Toomey pointed out that bitcoins are software and said what they all must recognize here is a simple thing: the code did nothing wrong. Cryptocurrencies and FTX are distinct entities. FTX was deceptive, authoritarian, and impenetrable. Digital currencies are transparent, autonomous and accessible.
The collapse of FTX is not an indictment of crypto. It’s an indictment of those who misused customer assets.
As I’ve said for months, Congress needs to give regulatory clarity so business flows to prudent, sensible, well-regulated American crypto exchanges. pic.twitter.com/oXKZdawO0m
— Senator Pat Toomey (@SenToomey) December 14, 2022
Should Crypto be Banned or Paused Due to the FTX Fallout?
The Pennsylvania Senator then addressed calls for a ban on cryptocurrency in the wake of the FTX catastrophe. He advised them to consider a few instances. To all those who think this instance warrants banning Crypto. Misapplication of mortgage-related products had a significant role in the financial crisis of 2008. Do they intend to outlaw mortgages? Obviously not. Former New Jersey Senator John Corzine’s commodity brokerage business failed due to misusing customer deposits, especially dollars, to make up for business losses. Nobody proposed outlawing the U.S. dollar as the source of the issue. Senator Toomey insisted that, with FTX crypto exchange, the issue is not the equipment employed. The issues were exploiting consumer funds, flagrant incompetence, and criminal activity.
Will the legislator decide to put the Constitution on hold to stop cryptocurrency? In his opinion, this mentality has brought this practice to the planet’s remote, less controlled areas.
Should Congress Avoid Controlling Cryptocurrency?
Additionally, the politician said that some had advised not discussing cryptocurrencies at all to avoid endorsing their use. It is reckless, in addition to being wrong. The Senator explained that cryptocurrency users might also feel great empowerment. When Governments handle their currencies carelessly, they can prevent inflation. They don’t require a business or intermediary to offer valuable services. Additionally, they can permit people to maintain their right to do business in secret.
Pat Toomey twitted that the demise of FTX does not reflect poorly on cryptocurrency. It is a charge against people who mishandle consumer assets.
“Code committed no crime,” @SenToomey says in today’s U.S. Senate hearing on the collapse of @FTX_Official.
“With FTX, the problem was not with the instruments that were used. The problem was the misuse of customer funds.”
Follow our coverage: https://t.co/CGzL0eaPJ1 pic.twitter.com/o4RiTOSYbL
— CoinDesk (@CoinDesk) December 14, 2022
People have Faith on Binance
Binance provides a flexible, largely safe method for trading and investing in cryptocurrency. Both new and existing traders could find Binance overwhelming. Compared to numerous other crypto exchanges, Binance charges cheaper fees. Some Twitter comments prove that they support Binance even in its hard times.
I support #Binance in the good times and the hard times as they support the future of #cryptocurrencies and the users.
Do you?
— Travladd Crypto (@OfficialTravlad) December 17, 2022
What about NFT?
Following the FTX catastrophe, which saw more than $150 billion erased from the market in a few days, NFT exchanges suffered greatly. Among the most popular crypto derivative systems were FTX, but a string of unfortunate circumstances forced the site into bankruptcy.
