Case law is likely to shape future of US crypto rules

Significance

The implosion of FTX, its sister hedge fund Alameda Research and an interconnected assortment of digital-asset entities founded by Bankman-Fried has fuelled demands in the United States for stringent regulation to protect consumers and investors.

Impacts

• The speed with which FTX-related charges were brought shows authorities' intent to be seen to be acting more swiftly on white-collar crime.
• Product liability suits brought by consumers, an established US legal remedy, are likely.
• Plea deals to avoid long, complex trials are routine for financial crimes, but public outrage at FTX may make this politically impossible.