Cryptocurrencies Need Tough Regulation-US Treasury Secretary
2022.11.30 11:05
Cryptocurrencies Need Tough Regulation-US Treasury Secretary
Budrigannews.com – On Wednesday, U.S. Treasury Secretary Janet Yellen stated that the recent turmoil in the cryptocurrency market has not affected the banking industry; however, she maintained her skepticism regarding the sector and believed that it required adequate regulation.
At an event that was held by the New York Times DealBook, Yellen said that it was important to make sure that crypto assets had enough protections for customers.
She stated, “I have been skeptical and I remain quite skeptical.”
She added it was critical to stay open to monetary advancements, particularly on the off chance that they could bring down the expense of cross-line exchanges and assist with working on monetary incorporation, however said that was not what late improvements had been about.
“I believe that everything that has transpired over the past few weeks, as well as earlier, demonstrates that this is an industry that really requires adequate regulation.She stated, “And it does not.”
On November 11, cryptocurrency exchange FTX stated that it owed its 50 largest creditors nearly $3.1 billion when it filed for bankruptcy in Delaware.An estimated one million customers and other investors suffered billion-dollar losses as a result of the high-profile crypto crash.
DealBook was informed by Yellen that the Treasury Department had produced a number of reports outlining “significant” concerns and that the United States was having discussions with allies regarding the regulation of cryptocurrencies.
She stated that protecting and separating customer assets in order to avoid issues like those with FTX would be a top priority.
The cryptographic money emergency added up to a “Lehman second” for the area, Yellen expressed, alluding to the 2008 insolvency of Lehman Siblings venture bank, which set off a tremendous securities exchange slump and prompted a $700 billion bailout of monetary players by the U.S. government.
“The good thing about an explosion like the one we witnessed is that it has not affected the banking industry.She stated, “Crypto regulators have been extremely cautious.”
“It’s a Lehman moment in crypto, and crypto is big enough that we’ve done a lot of damage to investors,” says the author.
