The U.S. Treasury Secretary said effective supervision of the cryptocurrency market is needed after the FTX crisis.

U.S. Treasury Secretary Janet Yellen said the FTX crisis shows the need for effective supervision of the cryptocurrency market amid growing congressional voices that action is needed due to the FTX collapse.

“In response to President Biden’s virtual asset administration order in September, the Treasury’s report found many risk factors,” Yellen said. “If the report was reflected in the policy, it could have prevented the disaster.”

The report prepared by the Ministry of Finance cited △ consumer asset mixing △ lack of transparency △ conflict of interest as risk factors in the cryptocurrency market. Minister Yellen explained that the factor appeared in the cryptocurrency market last week, causing confusion.

The U.S. Congress is discussing a bill to regulate cryptocurrency, but it has not been put to a vote. The U.S. financial regulators, the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), are taking administrative measures against cryptocurrency companies, but have yet to provide specific guidelines for cryptocurrency companies and exchanges.

By fonuder

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