FTX Collapse Could Wake Up Washington on Crypto Regs: SEC's Peirce

headshot of RIA Ric Edelman

Do you think this incident is going to create a new sense of urgency in Washington to get regulations in place?

Certainly, we’re all concerned that people suffer as a result of events like this, and I hope we can pull from that a silver lining in the sense that it may motivate those of us in Washington to really get to work. We have to keep bringing enforcement actions, but the piece that’s been missing thus far has been designing a regulatory framework. I’m hoping these events can be a catalyst for us to get to work, with much-needed input from Congress.

How long before we see those regulations?

When the SEC does not take advantage of its tools to be a proactive, productive regulator, Congress pushes it along. A lot is in flux now, and we’ll see.

Lastly, what’s your advice for the everyday consumer who has watched these events unfold?

Think about your circumstances which are unique to you and you know better than anyone else. Don’t be embarrassed to ask questions, and don’t ever fall for FOMO — the fear of missing out. There will be other opportunities. You don’t need to act now. When people tell you that you must invest right now, wait until you’re ready, until you feel you have your questions answered and you’re comfortable. And if that point doesn’t ever happen, then you don’t have to buy any particular asset class. It’s your decision.

Ric Edelman is an author and founder of RIA Edelman Financial Engines (earlier Edelman Financial Services). He now leads the Digital Assets Council of Financial Professionals, or DACFP, which recently formed a strategic partnership with the Financial Planning Association to provide educational programming and content to help FPA members understand the complexities of cryptocurrencies and how these issues can affect their clients’ financial plans.