U.S. Secretary of Treasury: crypto markets needs more reliable supervision

On Wednesday, U.S. Secretary of Treasury Janet Yellen said that cryptocurrency markets require more reliable oversight. According to Reuters, this statement was made after the crash on the FTX cryptocurrency exchange. 

Yellen didn’t mention FTX specifically but talked about the recent failure of a big cryptocurrency exchange and the drastic consequences for investors and asset holders. She said that this is the reason why digital assets require more reliable supervision. 

Yellen added that the Treasury and other regulators last year found out numerous risks in the cryptocurrency market. These risks include compiling assets, opaqueness, and conflict of interest. According to the politician, it was these risks that caused the cryptocurrency market storm which had happened last week.

Yellen admitted that consumer rights in the cryptocurrency market should be protected, so the federal government and Congress need to deal with the legal vacuum in this field as soon as possible. Although the digital currency markets themselves suffered the most damage, they are connected to the traditional financial system, and this can lead to instability.