Denelle Dixon, a former Yahoo lawyer and the current CEO of Stellar Development Foundation, has given a stern warning about the potential effects the recent drama surrounding Sam Bankman-difficult Fried’s journey at FTX may have on future regulation of the industry.

In a recent interview, Dixon expressed worries that Bankman-meteoric Fried’s ascent to fame in the business and abrupt demise may make regulators wonder who they can trust in such a volatile environment. She anticipated that soon political drama would emerge, with lawmakers like AOC and Elizabeth Warren challenging those in charge of consumer protection.

Dixon stressed the significance of stablecoins for the future viability of the sector. She thinks that utilizing blockchain technology could be essential for assuring effective help distribution in emergency situations. She cautioned, however, that technology alone cannot improve challenging situations and that regulation must also be taken seriously.

Dixon thinks it’s critical to take thoughtful steps toward creating norms that can safeguard consumers while yet enabling innovation to flourish as public scrutiny grows. Although there isn’t a clear road ahead just yet, it is obvious that Coinbase’s mess has created a new can of worms for future cryptosecurity laws that will need much more thought and debate before a solution is found.