USATreasury Minister Janet Yellen, FTXBy also referring to the effects of crypto events of the arrangementstated that it should.
It is the second largest cryptocurrency exchange in the world. FTX caused global reactions after its bankruptcy. The collapse of the FTX stock market also affected the global economy. In particular, the assets of investment asset management companies suffered serious losses. With the FTX collapse, most companies took legal action to recover their assets. Scandalous allegations also took place behind the bankruptcy of the stock market. CEO of FTX Sam Bankman-Fried It was alleged that he made transactions with customer funds. After all these processes, US Secretary of the Treasurypointed to the regulations.
US Treasury Secretary Highlights Crypto Industry
US Secretary of the Treasury Janet Yellen gave an interview to Bloomberg. Yellen addressed the collapse of the FTX empire founded by Sam Bankman-Fried. Drawing attention to the recent collapse, the minister stated that a very careful arrangement should be made. Yellen, crypto regulationsHe didn’t make a detailed statement about it.
Moreover Yellenstated that the events that took place highlight the weak points of the crypto industry. Minister, also said:
The idea that an exchange could use deposits from its clients and lend them to a separate entity to make leveraged, risky investments… This is not allowed.”
In addition, the US Treasury Secretary also referred to the fact that cryptocurrencies are not fully integrated into the banking sector. Yellennoted that the consequences of the FTX debacle could have been more severe if the crypto were more integrated into the financial system.
