US Treasury Secretary Janet Yellen has called for more effective surveillance of the crypto market.
According to Yellen, the collapse of cryptocurrency exchange FTX is clear evidence that digital asset markets need more effective surveillance.
Janet Yellen Demands More Effective Oversight
Treasury Secretary Yellen said:
“The traditional financial system and the interconnections of crypto markets can raise financial stability concerns. It is vital to do what is necessary to address these risks going forward, protect consumers and promote financial stability.”
Yellen’s statement comes after FTX’s filing for bankruptcy affected many companies in the crypto industry. FTX was valued at $32 billion last January.
Janet Yellen said regulators must “meticulously” enforce existing rules and that Congress must “act quickly” to fill regulatory gaps identified by the Biden administration.
“Some of the risks we identified in these reports, including consolidation of client assets, lack of transparency and conflicts of interest, were at the heart of the stressful process in the cryptocurrency industry over the past week.
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