The US Senate called on crypto exchanges to report on their reserves


The head of the Finance Committee at the US Senate, Ron Wyden, appealed to crypto exchanges to disclose information about their reserves.

Democratic Senator Ron Wyden demanded that Binance, Coinbase, as well as other cryptocurrency exchanges explain how they will protect their customers in the event of a financial disaster. This is reported by The Washington Post with reference to the senator's letter.

It is reported that in addition to the two above exchanges, the letter is also addressed to Kraken, KuCoin, Bitfinex and Gemini. Wyden demanded that trading platforms disclose information about how they manage customer deposits and assets. The Democratic senator also requested a report on the reserves of the exchanges, demanding at the same time to explain his policy in case of bankruptcy.

Wyden's request was made against the background of the collapse of the FTX crypto exchange, the head of which publicly called for regulation, lobbying his interests by buying up licensed American companies. It is expected that in December the Senate will hold hearings on the collapse of FTX, having received comments from the founder of FTX, as well as the Binance crypto exchange. However, neither side has publicly confirmed its participation yet.

Recall that the FTX crisis began shortly after Binance founder Changpeng Zhao publicly announced plans to sell off a stake in FTX in FTT tokens within a few months. Zhao explained the duration of the sale by the desire to "minimize the impact on the market."

According to the head of Binance, his exchange decided to get rid of its stake in FTT after "recent revelations." Zhao has not yet specified what exactly he is talking about, but his announcement came a couple of days after the revelatory material appeared in the media about the bloated balance sheet of the trading firm Alameda Research, which was also founded by Bankman-Fried.

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