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WHAT'S WRONG WITH FEDERAL OVERSIGHT OF SOME INVESTMENT EXCHANGES?
Here's what's wrong: FTX crash illustrates Congress’s weakness on tech. Here’s a solution
Excerpt:
Definition: FTX is a centralized cryptocurrency exchange specializing in derivatives and leveraged products. It supports most commonly traded cryptocurrencies. FTX's key product offerings include futures, leveraged tokens, options, MOVE contracts, and spot markets.
Don't become overly amazed at that definition. The reader is not the only one who has never ever seen that definition. Which says a lot about the way Finance is run in America today.
FTX (a company) failed as explained here by Investopedia:
More about what actually happened from Investopedia here. The Collapse of FTX: What Went Wrong With The Crypto Exchange?
Excerpt:
I leave the rest to your adept fingers ... what happened should not have happened. That is, the policing of a stock-exchange is practicably non-existent in some instances. That is, there is no overall body that oversees the exchange and what it is doing. So, it is very much like a gambling on-line trading-platform.
Meaning, "be carefull or you'll lose your shirt" ...
Here's what's wrong: FTX crash illustrates Congress’s weakness on tech. Here’s a solution
Excerpt:
Last week, both the American electorate and the cryosphere were on edge. As votes were cast and returns reported, the popular FTX crypto marketplace fell apart amid a shocking accounting scandal. These coinciding events are prescient of the challenges facing the incoming congress. Between the pandemic and President Biden’s campaign agenda, tech issues have been deprioritized. FTX’s collapse, however, demonstrates that they cannot be ignored.
Beyond crypto, artificial intelligence is upending commercial art, cyberthreats plague businesses, quantum computing disruption looms and social media is spinning out of control. All the while China seeks internet hegemony and Russia traps its people behind a digital Iron Curtain. At some point, tech must have its legislative day.
Today, Congress finds itself unequipped. The last Congress included a meager 12 professionals with STEM (science, technology, engineering, math) backgrounds, a number unlikely to grow. Yet the immense tech challenges we face may consume this Congress, if not the next. To lay the groundwork for success, Congress should re-establish the Office of Technology Assessment (OTA).
Definition: FTX is a centralized cryptocurrency exchange specializing in derivatives and leveraged products. It supports most commonly traded cryptocurrencies. FTX's key product offerings include futures, leveraged tokens, options, MOVE contracts, and spot markets.
Don't become overly amazed at that definition. The reader is not the only one who has never ever seen that definition. Which says a lot about the way Finance is run in America today.
FTX (a company) failed as explained here by Investopedia:
How Did FTX Fail? FTX filed for bankruptcy on Nov. 11 after a surge of customer withdrawals earlier in the month. CEO Sam Bankman-Fried admitted that the company did not have sufficient assets in reserve to meet customer demand.
More about what actually happened from Investopedia here. The Collapse of FTX: What Went Wrong With The Crypto Exchange?
Excerpt:
Cryptocurrency exchange FTX filed for Chapter 11 bankruptcy protection on Nov. 11, 2022 after a swift fall from grace. The company's valuation plunged from $32 billion to bankruptcy in a matter of days, dragging down founder and CEO Sam Bankman-Fried's $16 billion net worth to near-zero.
FTX's collapse shook the volatile crypto market, which lost billions in value, dropping below $1 trillion.3 The consequences of FTX's rapid decline and collapse will likely impact cryptocurrencies well into the future and could even drag down broader markets.
On November 16, a class-action lawsuit was filed in a Florida federal court, alleging that Sam Bankman-Fried created a fraudulent cryptocurrency scheme designed to take advantage of unsophisticated investors from across the country. Other celebrities named in the lawsuit include Steph Curry, Shaquille O'Neal, Shohei Ohtani, Naomi Osaka, Larry David, and Kevin O'Leary who allegedly helped Bankman-Fried facilitate the plan.4
The U.S. House Financial Services Committee said it will hold a hearing in December 2022 on the FTX collapse. Below, we explore what went wrong with FTX.
I leave the rest to your adept fingers ... what happened should not have happened. That is, the policing of a stock-exchange is practicably non-existent in some instances. That is, there is no overall body that oversees the exchange and what it is doing. So, it is very much like a gambling on-line trading-platform.
Meaning, "be carefull or you'll lose your shirt" ...