US Treasury Secretary Janet Yellen said that the collapse of the FTX cryptocurrency exchange once again demonstrated the need for more careful oversight of the crypto industry.
Janet Yellen referred to some reports prepared by the US Department of the Treasury, which reflected many of the factors that played a role in the collapse of the crypto exchange. According to her, if politicians had paid due attention to these reports, then the trouble could have been avoided.
“Much of what was discussed last week in the cryptocurrency and other communities was reflected in our reports long before the actual situation. The mixing of client assets, conflicts of interest and lack of transparency were all in our reports,” says Yellen.
Most of the blame for what happened, she said, lies with federal regulators, who didn’t catch on in time and didn’t use existing laws to prevent market turmoil. Now, according to Yellen, all financial regulators and legislators need to step up to quickly take action to regulate the crypto market.
The Minister of Finance noted that it is not yet necessary to develop fundamentally new laws for the crypto industry – existing laws are suitable for eliminating such risks. But they must be strictly observed, otherwise the consequences will be more destructive and far-reaching.
Earlier, Shark Tank show host Kevin O’Leary stated that his investment in FTX has reached zero and he is not going to invest in crypto anymore until laws are in place to prevent defaults.
Source: Bits
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