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.

At a Senate Banking Committee nomination hearing on November 30, Sen. Elizabeth Warren (D-MA) praised the actions of FDIC acting chair Martin Gruenberg with respect to cryptocurrency. She said, “Our banks stayed safe even as crypto imploded because many of President Biden’s regulators, like acting chairman Gruenberg, fought to keep crypto from becoming dangerously intertwined with our banks. He did this despite the Trump administration's and crypto boosters’ aggressive efforts to bring crypto and all its risks into traditional banking.” She also referred to cryptocurrency as toxic and said it does not belong in the traditional banking system.

On November 21 Senate Banking Committee Chair Sherrod Brown (D-OH) and Sens. Jack Reed (D-RI), Chris Van Hollen (D-MD), and Tina Smith (D-MN) sent a letter to the FDIC, OCC, and FDIC urging them to scrutinize cryptocurrency investment products being offered by SoFi, a fintech lender, and determine whether the products comply with banking and consumer protection rules.

On November 21 Sens. Dick Durbin (D-IL), Elizabeth Warren (D-MA), and Tina Smith (D-MN) sent a letter to Fidelity Investments cautioning the company against allowing 401(k) investors to put their money into cryptocurrency. The letter says, “By many measures, we are already in a retirement security crisis, and it should not be made worse by exposing retirement savings to unnecessary risk” and cites the recent collapse of FTX has evidence that such investments are unwise.

Senate Finance Committee Chairman Ron Wyden (D-OR) sent letters to Binance, Coinbase, and other cryptocurrency exchanges calling for them to provide information about their organizational structures, balance sheets, and real estate acquisitions, among other things. He said that he is focused on consumer protections needed for customers of exchanges.