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Crypto Industry Participants Field Questions from UK Lawmakers After FTX Collapse
In an evidence inquiry session on crypto held by the Treasury Committee, the group addressed negative questions, with some calling for more regulatory clarity.
Following the FTX bankruptcy last week, executives from Binance and Ripple, among others, testified in front of the U.K. Parliament Treasury Committee.
Present were committee chair Harriet Baldwin – a conservative member of parliament – along with other members of that committee. Testifying were Daniel Trinder, vice president of government affairs of Europe at Binance, Susan Friedman, head of policy at payments network Ripple, Ian Taylor, executive director of lobby group CryptoUK and Tim Grant, head of Europe at Galaxy Digital.
STORY CONTINUES BELOW
“This is the exchange collapsing Ian, must feel a bit awkward coming in talking to us after last week,” Baldwin said. She also fired off other questions to the group, such as if the events surrounding FTX undermined confidence in what they do for a living.
“I think it would be very wrong to tar the entire industry by this one bad apple, which happened to be a very big apple,” Grant said.
Read more: FTX Collapse Exposed 'Weaknesses' in Crypto, Janet Yellen Says: Report
The U.K. still has hopes to be a crypto innovation hub and wants to work with regulators to ensure this objective doesn't undermine stability, its Finance Minister Jeremy Hunt told Sky news on Friday.
Turning back to today’s hearing, CryptoUK’s Taylor called for the government to put in place a broad framework like the European Union’s Markets in Crypto Assets (MiCA) legislation, and Ripple’s Friedman echoed this request. Plus, Taylor and Binance’s Trinder also said crypto firms needed auditing.
The committee also asked Trinder if Binance knew its actions – 1) Unloading on the markets much of its holdings of FTX exchange token FTT, and 2) Agreeing to and then backing out of a deal to bailout/acquire FTX – might lead to the collapse of that exchange.
Trinder denied such intention and offered to quickly send the committee related correspondence documents to justify that Binance’s actions were not fuelled by the intention to destroy its competitor.
Read more: EU Finalizes Legal Text for Landmark Crypto Regulations Under MiCA
Camomile Shumba
Camomile Shumba is a CoinDesk regulatory reporter based in the UK. Previously, Shumba interned at Business Insider and Bloomberg. Camomile has featured in Harpers Bazaar, Red, the BBC, Black Ballad, Journalism.co.uk, Cryptopolitan.com and South West Londoner.
Shumba studied politics, philosophy and economics as a combined degree at the University of East Anglia before doing a postgraduate degree in multimedia journalism. While she did her undergraduate degree she had an award-winning radio show on making a difference. She does not currently hold value in any digital currencies or projects.
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Crypto Industry Asks President Trump to Stop JPMorgan’s 'Punitive Tax' on Data Access
A coalition of fintech and crypto trade groups is urging the White House to defend open banking and stop JPMorgan from charging fees to access customer data.
What to know:
- Ten major fintech and crypto trade associations have urged President Trump to stop big banks from imposing fees that could hinder innovation and competition.
- JPMorgan's plan to charge for access to consumer banking data may debank millions and threaten the adoption of stablecoins and self-custody wallets.
- The CFPB's open banking rule, which mandates free consumer access to bank data, is under threat as banks have sued to block it, and the CFPB has requested its vacatur.
