November 17, 2022

Treasury Secretary Yellen Calls for Increased Oversight of Digital Asset Markets

Treasury Secretary Janet L. Yellen urged regulators to provide more effective oversight over cryptocurrency markets given the recent market-moving events in the digital asset space.

In a statement on the collapse of the FTX crypto exchange, Ms. Yellen warned that the growing interconnectedness of traditional and decentralized finance increases the risk of contagion and spillover, and called for strong investor and consumer protection laws to address this risk. She said that a lack of transparency in the market combined with conflicts of interest caused by practices such as commingling of customer assets expose the industry to numerous additional risks. She urged regulators to utilize existing rules where applicable and act quickly to fill in any remaining regulatory gaps. Ms. Yellen also emphasized the need for robust financial stability controls.

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