US Treasury Secretary Janet Yellen Warns of Crypto Collapse exchange FTX shows that the crypto industry “really needs proper regulation.” She added: “This is the Lehman Moment in cryptocurrencies, and cryptocurrencies are big enough and have hurt investors quite a bit.”
Treasury Secretary Janet Yellen on FTX Implosion and the Need for Proper Cryptocurrency Regulation
US Treasury Secretary Janet Yellen on the need for proper cryptocurrency regulation following the collapse of the cryptocurrency exchange FTX. He said: Event hosted by the New York Times Dealbook Wednesday. She said:
I’ve always been skeptical.
While emphasizing the importance of ensuring that cryptoassets have adequate customer protection, the Treasury Secretary has urged, among other things, to reduce cross-border transaction costs and help improve financial inclusion. increase.
Yellen continued to comment on her FTX meltdown, which she filed for bankruptcy on November 11th. The cryptocurrency exchange owes her more than $3 billion in debt to the 50 largest creditors, facing an estimated 1 million customers and other investors in total. Billions of dollars lost due to collapse. Her take:
I think that’s all we’ve been through in the last few weeks, but even before that, you said the industry really needed proper regulation. I’m here. And it’s not.
The Treasury Secretary also revealed that the United States has been discussing crypto regulation with allies, and that the Treasury Department has expressed “significant” concerns about cryptocurrencies. She said protecting customer assets and ensuring the segregation of those assets is a top priority.
Yellen likened the FTX implosion to the collapse of Lehman Brothers. The investment bank she filed for Chapter 11 bankruptcy in 2008, which caused a sharp decline in the stock market and led to her $700 billion bailout from the US government. Yellen explains:
This is the Lehman Moment in cryptocurrencies, and cryptocurrencies are big enough to hurt investors quite a bit.
Nevertheless, she noted that her FTX meltdown “has not spilled over into the banking sector,” adding that “banking regulators are paying close attention to cryptocurrencies.” I came,” he emphasized.
Earlier this month, Yellen said the failure of FTX reinforced her view that the cryptocurrency market needed “very careful regulation”, adding that she “explained the weaknesses of the sector as a whole.” It shows,” he said. She explains: The idea of using an exchange’s customers’ deposits to lend to another company that it manages to make leveraged and risky investments is unacceptable.
Image Credits: Shutterstock, Pixabay, Wiki Commons