Hal Scott is an emeritus professor at Harvard Law School and director of the Committee on Capital Markets Regulation. John Gulliver is the committee’s research director

After the crypto exchange FTX filed for bankruptcy on 11 November, Gary Gensler, the chair of the US Securities and Exchange Commission, announced that he will crack down on the “wild west” of crypto markets. Meanwhile, Reuters reported that between $1bn and $2bn in customer funds held by FTX had disappeared. If US customers lose their shirts, the SEC will bear significant responsibility.