JAKARTA - US Treasury Secretary Janet Yellen said on Wednesday, November 16 that the crypto market needed stronger scrutiny, days after the FTX cryptocurrency exchange collapsed.
"The recent failure of major cryptocurrency exchanges and unfavorable impacts caused by crypto-asset holders and investors demonstrates the need for more effective oversight of cryptocurrency markets," Yellen said in a statement.
The Treasury Department and other regulators have also identified risks in crypto markets over the past year including "the arrival of customer assets, lack of transparency, and conflicts of interest," which "is the center of crypto market pressure observed over the past week," Yellen said.
Consumer protection must be strictly enforced in the crypto market and the federal government and Congress need to move quickly to fill regulatory loopholes, Yellen said.
The damage has been largely contained in the crypto market, its relationship with traditional financial systems "could increase financial stability issues more broadly," he said.
His remarks largely point to concerns voiced by banking regulators on the two days of congressional hearings, in which they say the overflow has been limited from FTX's collapse and other upheaval in the crypto market this year.
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