The collapse of the FTX crypto exchange has prompted senior government officials, including Securities and Exchange Commission (SEC) chief Gary Gensler, to comment on the cryptocurrency ecosystem.

Talking inside An interview With CNBC, he told Gensler, he has repeatedly said that investors need adequate protection.

He lamented that despite clear rules in the industry, most of the players are still not following them.

And he said:

I think investors need better protection in this area.

This is a highly inconsistent field, but it is subject to regulation.

As for the FTX platform, the SEC chief said the company has significant influence in the space, with several high-profile celebrities serving as ambassadors, including “Kevin O’Leary,” “Tom Brady,” and “Steve Curry.” , which had a huge impact on investors.

From their point of view, investors and the public can fall victim to celebrity promotions, which have grown a lot since last year.

Gensler’s stance that the industry has laws to guide it is somewhat disputed by bigwigs in the cryptocurrency ecosystem.

After the FTX implosion, Senator Elizabeth Warren shared a tweet indicating that she would begin lobbying the Securities and Exchange Commission to increase scrutiny of the crypto ecosystem.

In response, Coinbase CEO Brian Armstrong said the industry lacked proper guiding laws for players, a move that saw more than 95% of crypto transactions conducted overseas.

Drawing comparisons with Singapore, which has modeled how crypto players operate, Ripple CEO Brad Garlinghouse endorsed Armstrong’s position, underscoring the general consensus about the lack of clarity that exists in the industry in the USA.

With the fall of FTX, reports emerged that the Securities and Exchange Commission, the Department of Justice and the Commodity Futures Trading Commission (CFTC) are now investigating US trading platforms, starting with FTX US.

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