Circle co-founder: The FTX incident is a "Lehman Brothers" moment, and the crypto industry should increase on-chain structures and activities

ChainCatcher news, Circle's co-founder and CEO Jeremy Allaire shared some initial thoughts on the situation with FTX and Binance on social media, as well as the implications of this event for Circle, USDC, and the cryptocurrency market more broadly. He described FTX as another version of the "2008 Lehman Brothers moment." He stated that the fundamental reasons are the lack of transparency, lack of counterparty visibility, and the treasury and balance sheets of projects based on speculative tokens. During the last bull market, a large amount of "value creation" was almost entirely speculative, with attention to utility often being an afterthought or completely absent.

Additionally, on the regulatory front, Jeremy Allaire indicated that offshore regulatory arbitrage has given rise to global companies with no known fundamentals, and that the outcome could be worse if U.S. policymakers do not work together. Circle has consistently aimed to operate in a highly trusted and transparent manner, striving to establish a culture of compliance along with strong risk management and regulatory engagement. The industry should seriously move towards the increasing activities occurring in DeFi and on-chain structures. (Source link)