FTX illustrated why banks need to support cryptocurrency

Banks Should Embrace Crypto as a Means of Mitigating Risk and Avoiding Losses Consumers Incur in Fraudulent Crypto Exchanges .

FTX — the three letters on everyone's lips these days. For those active in the crypto space, this has been a blow as a tumultuous year for crypto comes to an end.

The repercussions are severe, with more than a million people and businesses owed money as a result of the crypto exchange's collapse, according to bankruptcy filings. With investigations into the collapse underway, this will certainly push forward regulatory changes, either through lawmakers or through federal agencies.

While regulators may feel relieved that the scandal did not happen on their watch, it underscores that there has simply not yet been enough action taken by regulators around the world on behalf of crypto exchanges, many of which would appreciate clear frameworks by those in power.

Related: Bankman-Fried Fooled Regulators By Hijacking Centralized Finance

Some have argued that regulators are responsible for allowing or even encouraging the behavior of FTX and, by extension, the creation of many faulty cryptocurrencies. It is fair to say that regulators are partly responsible for this tragedy and while failure to act shields them from liability, inaction on their part is equally damaging to their reputation as they are portrayed as irresponsible for not do more to protect consumers.

Ripple CEO Brad Garlinghouse tweeted on November 10: “Singapore has a licensing framework, token taxonomy and much more. They can properly regulate crypto because they have does the work to define what “good” looks like, and know that not all tokens are securities… to protect consumers, we need regulatory guidelines for businesses that ensure trust and transparency. /p >

@SenWarren, Brian is right -- to...