Crypto Liquidity Crunch Triggers Consolidation of Exchanges
Binance Intends to Acquire FTX Trading in Shakeup of Major Crypto Exchanges
WASHINGTON, D.C. – After days of speculation about the future of the crypto exchange FTX.com, crypto exchange Binance today said it signed a letter of intent to acquire FTX.com. News of Binance’s acquisition of its rival comes after rumors of a potential ‘liquidity crunch’ at FTX.
Robert Weissman, president of Public Citizen, issued the following statement:
“To the extent this announcement signals that the cryptocurrency Ponzi fad is fading away, it’s something to be celebrated. It’s time, once and for all, to silence the utopian-libertarian gibberish, recognize that crypto has provided no social utility while worsening the climate crisis, and acknowledge that the crypto industry’s investment scams have cost retail investors billions. On the other hand, crypto has proven great for money launderers and tax dodgers.
“Consolidation in the face of market turmoil rarely ends well for consumers or market integrity, and today’s developments are likely no exception. Regulators, including the Commodities Futures Trading Commission and Securities and Exchange Commission, must carefully scrutinize this merger and its aftermath, to ensure as little additional damage is inflicted on real people as possible.
“At this moment, Congress needs to take heed and ensure it doesn’t let a failing, scam-based industry lobby its way to a legislative bailout. Existing financial statutes for banking, securities, commodities, and consumer protection agencies already provide a robust foundation for regulators to address many of the problems facing investors and consumers, and Congress should not interfere with regulators’ current authorities.