U.S. Treasury Secretary Janet Yellen says the implosion of cryptocurrency exchange FTX shows 'the weaknesses' of the entire crypto sector. bitcoin
Yellen Says FTX Collapse Shows Weaknesses of Entire Crypto Sector — Fed's Brainard Pushes for Strong Regulation
the FTX collapse shows “the weaknesses” of the entire crypto sector while Brainard cautioned that failures from one platform are “spilling over into elsewhere.”U.S. Treasury Secretary Janet Yellen shared her concerns regarding the implosion of cryptocurrency exchange FTX Saturday in an interview with Bloomberg. She stressed that FTX’s failure has reinforced her view that the crypto market requires “very careful regulation,” emphasizing that “It shows the weaknesses of this entire sector.
In other regulated exchanges, you would have segregation of customer assets. The notion you could use the deposits of customers of an exchange and lend them to a separate enterprise that you control to do leveraged, risky investments — that wouldn’t be something that’s allowed. She noted that the crypto sector has proven to be susceptible to the same risks as traditional finance and should be subject to the same rules.
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