Ripple Policy Head Counsels for Crypto Space to Return to Real Utility Amid FTX Saga
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Rahul Advani, a policy executive at Ripple Labs, has shared the need for the crypto space to get back to fostering actual utility in the wake of the FTX collapse.
Breaking Free From Hype Cycles
Last week, Advani shared a letter with industry news sources explaining the need for the crypto market to overcome the need to foster “hype cycles.” The executive, who leads policy proposals for the Asia-Pacific region at the blockchain giant, explained that the collapse of FTX had been a wake-up call for the market, which now needs to get back to building actual utility.
Speaking on the current state of the market, Advani pointed out that FTX’s collapse had significantly damaged cryptocurrencies. Among other things, the collapse has led to a massive erosion of trust as many large centralized companies in the market now appear to be scrambling to keep their customers.
The blockchain executive added that the FTX saga should lead to a much greater focus on policy proposals and increased scrutiny of the crypto space.
Nevertheless, Advani believes that the entire debacle could have some positive impacts in the long run. Among other things, it could be the catalyst for most crypto projects to finally focus more on building long-term utility.
He called for a long-term approach to building and development, where investors and market participants shift from “hype cycles towards building real utility” for the market.
Regulators Turn Their Eyes to Crypto
Advani’s comments are undoubtedly true, especially when it comes to regulations. In the wake of the FTX saga, several regulators have already signaled that they would be moving ahead with seeking proper regulations for the market as a means of protecting investors.
Two weeks ago, a spokesperson for Australian Treasurer Jm Chalmers confirmed that the regulatory body is looking at laws geared towards protecting investors from the possible dangers of cryptocurrency investment.
Per a report from the Australian Financial Review (AFR), the spokesperson confirmed that the Australian Treasury is closely monitoring the FTX saga and its fallout, especially regarding further volatility and possible ripple effects in the crypto market. As the government continues to do so, it will also focus on developing laws that protect investors while promoting innovation.
The report comes as the Australian Securities and Investments Commission (ASIC) formally suspended the Australian Financial Services (AFS) license held by FTX’s local entity. The AFR also reported that up to 30,000 customers had fallen victim to FTX.
Sydney-based investment advisory firm KordaMentha has been appointed as administrator to offer restructuring services to FTX Australia and its subsidiary, FTX Express.
In the United States, Commodity Futures Trading Commission (CFTC) Commissioner Summer Mersinger also suggested earlier this month at the Texas Blockchain Week that the time for progressive crypto regulations has come.
Mersinger explained that the CFTC and the Securities and Exchange Commission had passed the “education stage” and are deep into the “action stage.”
However, she also emphasized the importance of regulators’ caution, as they will not be looking to stifle innovation in the crypto space.
While none of these agencies has stated what form their policies will take, many have warned that they may seize this opportunity to impose restrictive policies on the digital asset market.
