U.S. Treasury Secretary Janet Yellen believes that the collapse of the FTX cryptocurrency exchange is a sign of a lack of regulation of cryptocurrencies. At the same time, markets for virtual coins are increasingly resembling ordinary financial markets, which are normally subject to regulation.
Cryptocurrencies need more efficient regulation
“The recent collapse of a major cryptocurrency exchange and the resulting difficulties have resulted in demonstrating that cryptocurrency markets need more effective regulation and supervision,” Yellen said in a statement. According to her, it is obvious that cryptocurrency markets bring increasingly significant risk for ordinary investors.
Cryptocurrency popularity rises
They should be better protected, according to the former governor of the Federal Reserve. Retail investors are increasingly placing their funds in cryptocurrencies. Cryptocurrency markets thus resemble ordinary financial markets, but they are normally subject to regulation and supervision. And it is from this regulation that the rules for the cryptocurrency markets should also be based, Janet Yellen believes. The collapse of the FTX cryptocurrency exchange is another clear proof of why this type of asset markets requires more effective regulation and supervision.
