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US Treasury Secretary Calls for "More Oversight"

After the crash of the crypto exchange FTX, U.S. Treasury Secretary Yellen calls for stricter controls.

By Finst News
• 4 min read

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After the crash of the crypto exchange FTX, U.S. Treasury Secretary Yellen is calling for tighter oversight. Mistakes in the rules need to be fixed.

Treasury Secretary Janet Yellen has issued a statement offering her take on the latest developments in the crypto market.

"The recent collapse of a major cryptocurrency exchange and the unfortunate consequences for crypto asset holders and investors show that there is a need for more effective oversight of the crypto industry," Yellen said.

She added that the risks posed by crypto issuers, which were noted last year, resurfaced with the FTX crash: "Some of the risks we highlighted in these reports, including customer asset mixing, lack of transparency, and conflicts of interest, lay at the heart of the strains in the crypto market that were seen last week."

Stricter regulation would help

According to Yellen, laws to protect investors should be enforced more strictly in the crypto space as well. In addition, gaps in the regulation need to be closed quickly. "In the future, it’s important that we do whatever it takes to address these troubling risks and act to protect consumers and promote financial stability," Yellen said.

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