Binance wants to restore trust in crypto space with new consortium - report

In an effort to rebuild trust in the cryptocurrency industry following last year's wave of imploding firms, crypto exchange Binance ( BNB-USD ) ( BUSD-USD ) is organizing a consortium of firms in the space, CoinDesk reported Wednesday, citing a person familiar with the plans. Amid the fallout from the collapse of crypto exchange FTX ( FTT-USD ) and subsequent downfalls, the emerging industry is bracing for increased regulation. The Senate banking Committee, for instance, next week is going to conduct a hearing to assess financial system safeguards needed for digital assets. An unspecified number of crypto firms ranging from exchanges to individual projects have already signed up to join the consortium, the person told CoinDesk, while noting the incipient group "will be run in as decentralized manner as you possibly can amongst many different projects to ensure an alignment with the community." The group seeks to take an active role in coming regulations across the globe, the person added , and to "help avoid larger contagion issues" like what has persisted since FTX's demise. Binance has taken other measures to rebuild the troubled crypto space. In November, just days after FTX filed for bankruptcy protection, the platform said it will aim to create a $1B fund to buy distressed assets as part of its crypto recovery initiative. Earlier, Binance reportedly signaled that a full audit of its balance sheet won't happen for a while .