Regulators are coming to crypto post FTX

One by one the dominoes have come tumbling down this year. Sam Bankman Fried caused the world’s third largest centralized exchange FTX to collapse along with its trading arm Alameda.

We had Do Kwon’s Terraform Labs wiping out $45bn from the markets, and of course, the failed crypto Hedge Fund Three Arrows capital who’s founder Su Zhu just had the audacity to claim that the recent FTX contagion has set crypto back years.

It’s unclear what’s coming next, but I think most analysts and investors will bet on more regulatory scrutiny in crypto after these events. Last week JPMorgan put out a report stating just this and I think it’s worth looking at their analysis as about a third of the report is dedicated to arguing why DeFi will fail to capitalize on this year’s crash and the big winners coming out of all this will be centralized exchanges.