Treasury head Janet Yellen urges Congress to behave on crypto market regulation

The current failure of a significant cryptocurrency trade, i.e., FTX, and its affect on buyers in crypto property “display the necessity for more practical oversight of cryptocurrency markets,” U.S. Treasury Secretary Janet Yellen mentioned in a press release Wednesday.

The U.S.’s “very robust investor and client safety legal guidelines for many of our monetary merchandise and markets” have to be strongly enforced, she mentioned. “The federal authorities, together with Congress, additionally wants to maneuver shortly to fill the regulatory gaps the Biden Administration has recognized,” Yellen added.

She identified that among the dangers recognized by the President’s Working Group on Monetary Markets and Treasury Division stories have been on the middle of crypto market stresses that got here to mild up to now week. These embrace comingling of buyer property, lack of transparency, and conflicts of curiosity.

A current report from the Monetary Stability Oversight Council, which the U.S. Treasury chairs, warned that additional interconnections between the standard monetary system and crypto asset markets “may elevate broader monetary stability considerations.”

In February 2022, the Monetary Stability Oversight Council mentioned the crypto market may evolve to the purpose the place it represents a threat to world monetary stability,

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