The impact of Sam Bankman-Fried on the crypto industry (part 2)

Last week, in part 1 of the impact of Sam Bankman-Fried on the crypto industry, we examined the back drop of the collapse of Bankman-Fried’s crypto exchange, FTX. How the reverberations have slowed the adoption of cryptocurrencies in the US, potentially impeding eight asset managers from being able to launch Bitcoin ETFs and also potentially impacting Franklin Templeton from launching a BTC ETF were discussed. Bankman-Fried’s actions have also accelerated the call for crypto regulation in various jurisdictions and highlighted the need for greater regulation, which surely has to be a good thing. However, his actions have arguably undermined confidence in the use of blockchain technology for many. Unfortunately, the implications go further despite it now being reported that investors could well recover as much as 90% of their monies that at one stage were feared lost.

FTX's impact on established financial institutions such as Chase (a part of JP Morgan), Barclays, NatWest and Santander h…