Republican Senator Richie Torres Sees Merit in Well-Regulated Crypto

Richie Torres Believes That FTX Doesn’t Represent Crypto

When asked what he thought of the FTX collapse he replied that Sam Bankman-Fried was no more representative of the crypto sector than Bernie Madoff was of the conventional finance sector.

He just thought that the affair brought more urgency for regulation that would make crypto safe for consumers and investors. In spite of his support for crypto, he acknowledged that the space was currently dangerously deregulated.

Needed for Regulation

His idea for regulation includes obliging exchanges and stablecoin issuers to prove that their assets are liquid enough to cover all their liabilities. He was of the view that exchanges should never have a hedge fund (FTX/Alameda), and vice versa. He said he was worried about Tether because its reserves backing fell short of 100%.

Although the senator seemed very supportive of crypto technology generally, he doesn’t think it can succeed without comprehensive regulations. He said that he was skeptical that the crypto industry can succeed without a comprehensive regulatory framework at the federal level. He also said that the presence of a regulatory framework that distinguishes the best actors from the worst actors gives the industry a fighting chance of succeeding.