On December 7 Sens. Elizabeth Warren (D-MA) and Tina Smith (D-MN) sent letters to the heads of the Federal Reserve, FDIC, and OCC urging them to investigate U.S. financial institutions’ ties to the crypto industry. Their letters say, “While the banking system has so far [been] relatively unscathed by the latest crypto crash, FTX’s collapse shows that crypto may be more integrated into the banking system than regulators are aware…FTX’s collapse revealed close ties between banks and shady crypto firms…Banking regulators need to make sure that the highly volatile and risky crypto market won’t jeopardize the banking system and potentially harm millions of Americans.”

Rep. Tom Emmer (R-MN) tweeted on December 9 calling for SEC Chair Gary Gensler to testify before Congress “and answer questions about the cost of his regulatory failures.” He stated earlier in the thread that his “crypto information-gathering efforts were ineffective” and he “has repeatedly dodged Congress at the expense of investors…leaving us to learn about the SEC’s crypto investigations, like the one into FTX, through the media.”

Retiring Senate Banking Committee Ranking Member Pat Toomey (R-PA) introduced legislation on December 21 that “would establish the first federal regulatory framework for payment stablecoins and guide Congress towards a path for sensible regulation of cryptocurrencies.” He said, “I hope this framework lays the groundwork for my colleagues to pass legislation next year safeguarding customer funds without inhibiting innovation. I’ve put forward a regulatory model that won’t undermine competition by favoring entrenched incumbents—for example, by limiting payment stablecoin issuance to insured depository institutions. This bill will also ensure the Federal Reserve, which has displayed significant skepticism about stablecoins, won’t be in a position to stop this activity.”

New York Department of Financial Services Superintendent Adrienne Harris is calling for public comment on a proposed regulation to allow the agency to collect fees from cryptocurrency companies licensed to operate in the state in order to cover the cost of oversight. The fees would be similar to those paid by banking and insurance entities. Harris said, “This assessment authority will allow the Department to continue building the team that is leading the nation with a suite of regulatory tools. The ability to collect supervisory costs will help the Department continue protecting consumers and ensuring the safety and soundness of this industry.”

Bank of America released a research report on December 2 stating that cryptocurrency must be regulated if it is to become mainstream. It explains, “An increased urgency for regulation may enable greater institutional engagement, and a shift in focus (and capital) from speculative trading to projects with real-world functionality and companies with roadmaps to profitability may accelerate industry maturity.” It also notes that FTX’s collapse has underscored the need for a framework that “creates a transparent legal framework for digital assets; fosters technological innovation; provides consumer and investor protections; and mitigates financial stability risks.”

Former SEC Chairman Jay Clayton and former CFTC Chairman Timothy Massad published an opinion piece in the Wall Street Journal on December 4 titled “How to Start Regulating the Crypto Markets – Immediately.” In it, they write that “only someone who has been living under a rock could think cryptocurrency markets don’t need stronger regulation.”

The head of Intercontinental Exchange, which owns the New York Stock Exchange, said on December 6 that most cryptocurrencies will likely be regulated under existing securities laws following the collapse of FTX. In discussing SEC regulation of cryptocurrencies, he said, “It means more transparency, it means segregated client funds, the role of the broker as a broker-dealer will be overseeing and the exchanges will be separated from the brokers. The settlement and clearing will be separated from the exchanges.”

Goldman Sachs CEO David Solomon wrote an op-ed published in the Wall Street Journal called “Blockchain Is Much More Than Crypto.” In it, he writes, “As a longtime participant in financial markets, I still see blockchain as a promising technology if allowed to innovate under the right conditions. Under the guidance of a regulated financial institution like ours, blockchain innovations can flourish. Unlike other waves of innovation, blockchain technology came in and disrupted heavily regulated industries. The invention of email didn’t make FedEx or UPS obsolete. But blockchain technologies such as peer-to-peer payments and the tokenization of traditional assets are changing corporations, from how they raise money to how investors trade stocks. This has far-reaching implications for the global economy.”

New Yorker columnist John Cassidy authored a piece called “Washington Needs a Crypto Rethink.” In it, he outlines issues related to Sam Bankman-Fried’s downfall and weighs regulatory and legislative options for oversight of the crypto market.