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

The latest failure of a serious cryptocurrency trade, i.e., FTX, and its influence on traders in crypto belongings “reveal the necessity for simpler oversight of cryptocurrency markets,” U.S. Treasury Secretary Janet Yellen mentioned in a press release Wednesday.

The U.S.’s “very robust investor and shopper safety legal guidelines for many of our monetary merchandise and markets” must 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 a number of the dangers recognized by the President’s Working Group on Monetary Markets and Treasury Division experiences have been on the middle of crypto market stresses that got here to gentle prior to now week. These embody comingling of buyer belongings, lack of transparency, and conflicts of curiosity.

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

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

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