Crypto markets on the path to recovery following FTX fallout - Blockchain Association's Kristin Smith

Cryptocurrency expert Kristin Smith predicted Tuesday that crypto markets will recover and return to their true value once the FTX fallout clears Speaking to CNBC, the executive director of the Blockchain Association said the underlying crypto network will determine the future value of the asset class, not the infrastructure surrounding those networks. Smith added that the FTX failure is a separate event. "FTX is a failure of a centralized institution and the management of that institution not having proper values and care for customer funds," she said. "It has nothing to do with crypto networks and cryptocurrencies that fuel that network." In the wake of the FTX ( FTT-USD ) collapse, Smith argued that the U.S. needed "a comprehensive federal regulatory framework over the crypto markets" because "trust in the system is the important driver for the investors looking to invest in the crypto market." Smith expressed hope that crypto space will receive a stronger regulatory framework once the new Congress gets sworn in on Jan. 3. The crypto space saw gains on Tuesday, after FTX founder Sam Bankman-Fried was arrested in the Bahamas on Monday. Here are some key crypto ETFs and their intraday price actions: ProShares Bitcoin Strategy ETF ( NYSEARCA: BITO ) +3.82%, Valkyrie Bitcoin Strategy ETF ( BTF ) +3.8%, VanEck Bitcoin Strategy ETF ( XBTF ) +4.1%, Invesco Alerian Galaxy Crypto Economy ETF ( SATO ) +3.3%, Global X Blockchain & Bitcoin Strategy ETF ( BITS ) +2.92%, Global X Blockchain ETF ( BKCH ) +2.82%, VanEck Vectors Digital Transformation ETF ( DAPP ) +2.2%, and Bitwise Crypto Industry Innovators ETF ( BITQ ) +1.25%. Looking at individual cryptocurrency movers, here are some of the biggest names along with their intraday movement: Bitcoin ( BTC-USD ) +4.7%, Ethereum ( ETH-USD ) +5.9 and Dogecoin ( DOGE-USD ) +4.6%. Meanwhile, the new FTX CEO blasted Bankman-Fried's leadership of crypto firm in House hearing . Cryptocurrencies prices plunged in November after the fallout of Sam Bankman-Fried’s FTX empire . This was just one of a series of hits to the crypto sector, which has also had to deal with Genesis warning of bankruptcy and crypto lender BlockFi filing for Chapter 11 . For more in-depth analysis on BTC-USD, see why Seeking Alpha contributor Knox Ridley predicted " Bitcoin is going to rally again ." On the other side of the argument, fellow SA contributor Anna Sokolidou said, " Stay away from Bitcoin in 2023 ".