Will Congress Continue to Implement Regulations?

According to the reports, the collapse of FTX would result in comprehensive investigations and stringent regulations imposed on the cryptocurrency community. However, given that the majority of the lawmakers had close ties with the FTX CEO, Braganca has his doubts that they will support this venture.

Braganca stated that she was unsure as to whether or not lawmakers would take action or whether they would leave the problem up to the SEC.

In the past, the SEC had made a request to have Congress draft and establish stringent regulations on cryptocurrencies, which the regulatory bodies would then be required to follow.

Because Sam Bankman Fried had developed close relationships with various lawmakers in the days leading up to the crash, the cryptocurrency exchange known as FTX, which he founded and managed, has put Congress in an awkward position with regard to the question of regulation.

When the FTX crash was recorded, rumors began to circulate about how crypto freedom would eventually come to an end and that strict regulation would be imposed on crypto as a result of this incident. The irony of how this event unfolded is surprising. When the FTX crash was recorded, rumors began to circulate about how strict regulation would be imposed on crypto as a result of this incident. However, the current predicament raises the question of whether or not the legislators will carry out this plan in light of the close relationship that they share with the CEO of FTX.

Investigations Into the FTX Crash Are Still Being Conducted

Braganca, on the other hand, stated that lawmakers do not possess the necessary resources to handle the crisis on their own and that they would require assistance from professionals and well-known organizations in order to do so.

A report that detailed Alameda Research's holdings served as the impetus for the recent events that resulted in the FTX exchange filing for bankruptcy and then being liquidated the previous week.

According to a report that was written and distributed by Coindesk, Alameda Research held the vast majority of its assets in the form of FTT, which is the native token of the Exchange. Investigations are currently being conducted into the trading activities of Alameda Research, as well as allegations that investor funds have been misused and misallocated.

On the other hand, SBF added fuel to the fire by heading to Twitter to explain his side of the situation despite the fact that investigations were still ongoing. According to reports, this put additional pressure on his legal team, putting them in a difficult position; they stated that this is not what any legal team would require from its client at this time. This is not what any legal team would require from its client at this time.