Treasury Secretary Jennet Yellen raised concerns about the ongoing crypto market turmoil and said that trouble in the crypto market could eventually “raise broader financial stability concerns.”
- SEC and CFTC failed to guide crypto companies and exchange
- Lawmakers and Security agencies got a concern
Jennet Yellen has raised her voice to the lawmakers worried after the FTX fallout, saying on 16 November that the meltdown has demonstrated “the need for more effective oversight of cryptocurrency markets.”
Jenet has clarified that the report generated by the Treasury Department, as per the President’s order on digital assets, determined many of the risk factors in FTX’s collapse and bankruptcy. They have been turning these determined symptoms into policies that will help prevent other calamities.
Yellen has said, “Some of the risks we identified in these reports, including comingling of customer assets, lack of transparency, and conflicts of interest, were at the center of the crypto market stresses observed over the past week.”
Government Agencies like the Securities and Exchange Commission (SEC) and the Commodities Futures Trading Commission (CFTC) have to provide specific guidance, given that both companies have faced enforcement action against certain crypto companies.
The FTX and Binance saga devastatingly impacted thousands of customers, lawmakers and regulators aimed at the crypto industry.
Securities and Lawmaker agencies appeal for more regulatory action; Jenet Yellen said, “The federal government, including Congress […], needs to move quickly to fill the regulatory gaps the Biden Administration has identified.” The Treasury Secretary blamed federal regulators for failing to provide regulation to crypto companies and exchanges.
Yellen has made various statements on the risk factor; she said, “We have very strong investor and consumer protection laws for most of our financial products and markets designed to address these risks. Where existing regulations apply, they must be enforced rigorously to apply the same protections and principles to crypto assets and services.”
Washington was eager to play an important role in the crypto market after FTX and its sister company, Alameda Research, had done so. According to the last week’s reports, Alameda Research’s total wealth in its balance sheet was $14 billion, and half of that amount contains FTX utility tokens FTT which is used to get discounts on trading fees on the FTX platform.
Conclusion
Jenet Yellen is the 78th United States Secretary of the Treasury; Jenet has raised his voice to make the crypto market more transparent and safer. She has also mentioned the risk factor, according to the report by the Treasury Department, to make the market more efficient than earlier because many users faced issues after the FTX collapse.