FTX's Downfall Was 'Incredibly Damaging', Crypto Must Foster Genuine Utility: Ripple Politics Manager

Ripple's APAC Policy Director Says FTX's Collapse Is Exactly Why Crypto Needs To Pull Away From "hype cycles" and towards "real utility".

Ripple's APAC policy director described FTX's fall as "incredibly damaging" to the crypto space, but says the industry should stand the test of time if its focus shifts to creation of "true usefulness".

In a statement sent to Cointelegraph, Ripple's APAC Policy Officer Rahul Advani said he expects the FTX saga will lead to greater scrutiny of crypto regulations, while governments will reassess "their stance on crypto and blockchain technology", adding:< /p>

“The collapse of FTX is incredibly damaging to the crypto space and once again underscores the need for greater regulatory clarity.”

Advani argued that the industry will need forward-looking and “flexible” regulations to build trust in the crypto industry while protecting consumers.

"[These regulations] must include strong consumer protection measures, but also recognize the various risks posed by business-facing crypto firms."

"What we don't want to see is a knee-jerk response that could stifle innovation in the sector," he added.

Following the collapse of FTX, a number of regulators around the world have pledged to focus on developing greater crypto regulation.

The Australian government is stepping up efforts to put in place a regulatory framework for crypto and the International Monetary Fund (IMF) has called for more regulation in Africa's crypto markets, one of the fastest growing in the world .

Meanwhile, Summer Mersinger, commissioner of the US Commodity Futures Trading Commission (CFTC), said on November 18 that the weather...