US Treasury Secretary Janet Yellen Talks About Cryptocurrencies!

US Treasury Secretary Janet Yellen cryptocurrency The exchange described the collapse of FTX as “a Lehman event” for the digital asset industry.

“FTX Crash Was The ‘Lehman Event’ Of The Cryptocurrency Industry”

Speaking at the New York Times’ Dealbook Summit, Yellen, referring to the collapse of the Lehman Brothers bank that triggered the 2008 global financial crisis, said, “This was a Lehman incident in crypto, and crypto will cause significant harm to investors and especially people who are not very knowledgeable about the risks they are taking. “It’s so big, and that’s a very bad thing,” he said.

Referring to Bankman-Fried and FTX, Alameda Research and numerous affiliated companies, Yellen continued her statements about cryptocurrencies as follows:

“This is really an industry that needs to have enough regulation, and it doesn’t have enough regulation. We have repeatedly called for regulatory loopholes to be closed, and I think this experience with this firm or firms could not have been a better example.”

At the beginning of this autumn, bitcoin Prior to the collapse of the stock market FTX, the Treasury Department and the Financial Stability Oversight Council (FSOC), a supercommittee of regulators chaired by Yellen, recommended that existing financial laws governing digital assets continue to be enforced.

The FSOC also recommended that Congress pass multiple new laws to address potential loopholes in the regulation of crypto companies, including “regulatory arbitrage,” where firms like FTX position themselves outside traditional regulatory lines.

Yellen reiterated the previous statements of banking regulators, emphasizing that digital assets do not reflect on the banking sector in any way. He considered this a positive development:

“The good thing about a crash, as we’ve seen, is that it didn’t spread to the banking industry; Banking regulators have been very careful.”

*Not investment advice.