The collapse of FTX shows just how risky it is to invest in cryptocurrency. The US government, among others, is justifiably investigating the matter, and it's key to track how the public sector will respond through legislation. Companies like FTX need to be regulated the same way traditional banks are.
The pious calls of regulators are disingenuous. Besides the current headlines of bankruptcy, financial fraud, and risky investments, FTX's relationship with politicians and governments also needs scrutiny. The multi-billion-dollar exchange was used for everything from funding Ukraine's war effort to political campaign donations in the US. The public sector got tangled up in this crypto mess.