Regulators might be tempted to sit back and hope the crypto market will simply burn out, putting an end to the whole bizarre episode. That would be wishful thinking. All cryptocurrencies outstanding still have a notional value of about $850 billion, and daily trading remains in the tens of billions of dollars. Officials need to act on the lessons of 2022’s fiascos — from the collapse of the Terra stablecoin to FTX — to ensure that renewed speculation never threatens the broader financial system.
Three steps in particular would help.
Source: FTX Collapse: Thanks to SBF, Regulating Crypto Should Be Easy – Bloomberg