The collapse of FTX and its implications for the entire ecosystem of the crypto sector prompted lawmakers around the world to pay more attention to the regulation of the nascent asset class.

The U.S. House of Representatives announced they would launch an investigation into the FTX collapse at a hearing scheduled for December 13.

The hearing was titled "Investigating the Collapse of FTX, Part I" and is expected to be the first in a series of hearings examining the exchange, its business operations, and the broader implications of its closure.

Senate lawmakers are also keen to take a closer look at the FTX crisis, with the Senate Agriculture Committee due to hold a hearing on Thursday, and the Senate Banking Committee is working to schedule its own hearing in the near future.

Lagarde reiterates calls for regulation of cryptocurrencies

European Central Bank President Christine Lagarde said that the "stability and reliability" of cryptocurrencies "has been exposed in the most obvious way recently" when answering questions from politicians in the European Parliament concerned about the impact of FTX's downfall.

This line of questioning prompted Lagarde to reiterate a previous call for stronger cryptocurrency legislation as parliament awaits a final vote on its Markets in Crypto-Assets (MiCA) regulation, which is expected to pass in early 2023.

According to her, the introduction of MiCA will allow Europe to become "pioneers in this world of great inventivity and great unreliability," but added that "here will have to be a MiCA II" to strengthen control over cryptocurrency. "Europe aims to be a leader in that respect," she said.

During previous discussions on the topic of MiCA II, Lagarde suggested that the expanded framework should take into account risky connections to traditional finance as well as crypto activities beyond MiCA, such as decentralized finance (DeFi).

Lagarde also stressed the need for an alternative to digital payments, which will offer EU citizens unlimited access to the digital euro. "We have to be able to offer that, otherwise somebody else will take that place," Lagarde warned.

A decision on whether the EU will move forward with the implementation of the digital euro is expected by September 2023.