Wall Street Journal: The US SEC may be heavily responsible for the FTX incident

Comparatively, according to the Wall Street Journal, quoting the Harvard Law School Capital Market Supervisory Committee, the “Employee Accounting Bulletin” issued by the US Securities and Exchange Commission (SEC) in March requires banks that have custodial assets and their affiliated brokerage dealers to include the escrow assets in their balance sheets, or be responsible for users' losses in the FTX incident. This regulatory framework allows unregulated crypto trading platforms to hold or “host” crypto assets without the need for banks and brokers to keep them, prevent misuse of funds and ensure that customers can recover all of their funds, leaving users only to become creditors of the trading platform's bankruptcy, or to cost FTX users billions of dollars.