Sandra Lee, a member of the Financial Stability Oversight Council (FSOC), stated that the collapse of FTX could have been prevented if the recommendations from a report published by the FSOC in October 2021 had been closely examined. The FSOC is a group of top financial regulators established in 2010 by the Dodd-Frank Act, whose primary goal is to identify emerging risks to U.S. financial markets and make policy recommendations. Lee mentioned that some of the risks identified in the report were observed in the collapse of FTX, including market integrity issues and risks associated with cryptoasset firms. FTX, once one of the largest cryptocurrency exchanges, collapsed in November 2021 after a bank run and revelations of misused customer funds.

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