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White House on Crypto: More Oversight is Needed to Avoid 'Harming' Americans The Biden administration's call for increased regulation comes amid a turbulent week for digital currencies.

By Madeline Garfinkle Edited by Jessica Thomas

Opinions expressed by Entrepreneur contributors are their own.

Bloomberg | Getty Images
Founder and CEO of FTX, Sam Bankman-Fried

During a press conference on Thursday, White House press secretary Karine Jean-Pierre stated that the Biden administration "has constantly maintained that, without proper oversight of cryptocurrencies, they risk harming everyday Americans."

The White House's stance on crypto regulation comes during a particularly turbulent time for digital currency as the collapse of the cryptocurrency FTX unfolded earlier this week.

Related: 'I'm Sorry. That's The Biggest Thing.' Sam Bankman-Fried and Cryptoworld Lose Big in FTX Meltdown, Company Files For Bankruptcy.

"The most recent news further underscores these concerns and highlights why prudent regulation of cryptocurrencies is indeed needed," Jean-Pierre stated.

As FTX faces bankruptcy, the firm and its founder Sam Bankman-Fried are under extensive investigation about if clients' money was mishandled, Bloomberg reported. The probe is investigating the possibility that Bankman-Fried conducted a Ponzi scheme similar to that of Bernie Madoff by funneling clients' deposits into his hedge fund.

Related: Kevin Bacon Admits He Lost 'Most' of His Net Worth to Bernie Madoff's 'Too Good to Be True' Ponzi Scheme

The ramifications for investors could be catastrophic, which could be why the White House is determined to tighten regulations and oversight to avoid another FTX meltdown in the future.

Bankman-Fried took to Twitter to address the controversy, writing "I fucked up, and should have done better," before launching into a 22-part thread that concluded with "I sincerely apologize. We'll keep sharing updates as we have them."

Madeline Garfinkle

News Writer

Madeline Garfinkle is a News Writer at Entrepreneur.com. She is a graduate from Syracuse University, and received an MFA from Columbia University. 

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