Sens. Elizabeth Warren (D-MA), Chris Van Hollen (D-MD), and Roger Marshall (R-KS), sent a letter to Binance and Binance.US calling for the firms to provide balance sheet information going back to 2017, as well as the number of U.S.-based users from the past five years and internal anti-money laundering and know-your-customer policies. The group wrote that the companies’ “apparent attempts at evading the enforcement of anti-money laundering laws, securities laws, information reporting requirements, and other financial regulations cast serious doubt on the stability and legitimacy of Binance and its related entities, and on your commitment to your customers.”

Robinhood Markets Inc. said that the Securities and Exchange Commission is taking a look at its cryptocurrency business following the collapse of FTX. The company received an investigative subpoena in December “regarding, among other topics, [Robinhood Crypto LLC]'s cryptocurrency listings, custody of cryptocurrencies, and platform operations.”

The Federal Reserve, FDIC, and Office of the Comptroller of the Currency released a new joint cryptocurrency policy statement that discusses potential liquidity risks and urges banks to adopt “robust” due diligence and monitoring practices before taking digital asset businesses as clients. The agencies wrote, “When a banking organization’s deposit funding base is concentrated in crypto-asset-related entities that are highly interconnected or share similar risk profiles, deposit fluctuations may also be correlated, and liquidity risk therefore may be further heightened.”

The SEC, the New York Department of Financial Services, and New York Attorney General Letitia James are all opposing a $1.02 billion Binance.US-Voyager deal. The SEC has said that the deal “may violate the prohibition in Section 5 of the Securities Act of 1933 against the unregistered offer, sale, or delivery after sale of securities.”

The SEC announced that former NBA player Paul Pierce has agreed to pay more than $1.4 million for allegedly making false and misleading statements about EthereumMax tokens and posting on social media about it without disclosing the fees he was paid. He did not admit to or deny the SEC’s findings but pledged not to promote any crypto asset securities for three years.

The Federal Trade Commission announced that it has established a new Office of Technology, which aims to help the agency keep up with digital developments. The office will be run by Chief Technology Officer Stephanie Nguyen. In a statement FTC Chair Lina Khan said, “For more than a century, the FTC has worked to keep pace with new markets and ever-changing technologies by building internal expertise. Our office of technology is a natural next step in ensuring we have the in-house skills needed to fully grasp evolving technologies and market trends as we continue to tackle unlawful business practices and protect Americans."

The SEC is suing cryptocurrency network Terraform Labs and its creator and CEO, alleging that the company orchestrated a multibillion dollar securities fraud by offering and selling “an inter-connected suite of crypto asset securities, many in unregistered transactions” and which led to widespread turmoil in the industry when its stablecoin collapsed.

Rep. Dusty Johnson (R-SD), chair of the House Agriculture Committee’s Subcommittee on Commodity Markets, Digital Assets, and Rural Development, said in an interview with Bloomberg that, “in the wake of the FTX debacle, Congress is ready to step up and provide some additional common-sense protections to investors and to those that hold crypto.” He also said that he plans to hold hearings on crypto issues and work with the Financial Services Committee and its digital assets subcommittee chair, Rep. French Hill (R-AR).

The SEC voted 4-1 in favor of a proposal that is likely to make it more difficult for cryptocurrency firms to serve as digital asset custodians in the future. The rule has yet to be officially approved by the agency but would amend the 2009 Custody Rule to apply to custodians of “all assets.” Chairman Gary Gensler said, “Today’s rule, the 2009 rule, covers a significant amount of crypto assets…Further, though some crypto trading and lending platforms may claim to custody investors’ crypto, that does not mean they are qualified custodians. Rather than properly segregating investors’ crypto, these platforms have commingled those assets with their own crypto or other investors’ crypto.” Commissioner Hester Peirce voted against the rule.