While acknowledging that many big-name investors failed to conduct sufficient due diligence before giving money to Sam Bankman-Fried and FTX ( FTT-USD ), billionaire venture capitalist David Rubenstein said Wednesday that those "mistakes" wouldn't necessarily doom the entire crypto industry. "People did mistakes and there will probably be some other mistakes that are coming out of the crypto industry. That doesn't mean the whole industry is going to fall apart," the Carlyle Group co-founder told CNBC. Rubenstein's comments come in the wake of last month's revelation that closely watched venture capital firm Sequoia Capital had zeroed down its investment of over $210M in cryptocurrency exchange FTX. Rubenstein added that increased regulation might have increased the amount of information available ahead of the FTX collapse. He predicted that U.S. lawmakers would take about a year to pass legislation after the FTX scandal. "Most likely the SEC will be the main regulating body [for crypto] because people would say this is securities we're dealing with and not just commodities, and the SEC is tough in this area," he said. Explaining his one-year timeline for potential legislation increasing crypto oversight, Carlyle co-founder pointed to historical precedent. He noted that it took a year to come up with legislation after Enron's bankruptcy in 2001. Rubenstein reported that he has not invested in any of the cryptocurrencies. He added that Carlyle has also not invested in crypto even though the firm has invested in some companies that serve the industry. The cryptocurrency market has come under pressure in 2022, dragged down by a general move away from risk assets and a wave of collapses, of which FTX represented the most specular example. In this environment, Bitcoin ( BTC-USD ) and Ethereum ( ETH-USD ) have both lost more than 60% over the past 12 months. Dogecoin ( DOGE-USD ) has shed about 54% of its value. For more on crypto, see why Seeking Alpha contributor The Digital Trend is eying the next bull phase, which will see Bitcoin reach new all-time highs .
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