When crypto winter ends and investment activity blossoms once again in the digital assets space, financial advisors should be prepared to hear a new litany of questions from clients about the risks and opportunities in cryptocurrencies.
Recognizing that crypto has to be regulated as part of the regular economy is a first step to arguing for rules tailored to its unique innovations, says John Rizzo.
Gatekeepers such as lawyers, accountants and investment firms should have insisted the crypto industry handle itself in a safer fashion, Commissioner Goldsmith Romero argued.
The collapse of FTX in late 2022 may have been the final straw for Genesis, which earlier that year reportedly suffered losses of several hundred million dollars due to its exposure to failed crypto hedge fund Three Arrows Capital.