{"id":8575,"date":"2022-11-15T23:49:45","date_gmt":"2022-11-15T23:49:45","guid":{"rendered":"http:\/\/cryptoheretostay.com\/?p=8575"},"modified":"2022-11-15T23:49:46","modified_gmt":"2022-11-15T23:49:46","slug":"yellen-says-ftx-collapse-shows-weaknesses-of-entire-crypto-sector-feds-brainard-pushes-for-strong-regulation","status":"publish","type":"post","link":"https:\/\/cryptoheretostay.com\/?p=8575","title":{"rendered":"Yellen Says FTX Collapse Shows Weaknesses of Entire Crypto Sector \u2014 Fed&#8217;s Brainard Pushes for Strong Regulation"},"content":{"rendered":"<p> <script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"crypto\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script><br \/>\n<\/p>\n<p><strong>U.S. Treasury Secretary Janet Yellen and Federal Reserve Vice Chair Lael Brainard have stressed the need for strong crypto regulation. Yellen said <\/strong><strong>the FTX collapse shows \u201cthe weaknesses\u201d of the entire crypto sector while Brainard cautioned that failures from one platform are \u201cspilling over into elsewhere.\u201d<\/strong><\/p>\n<h2>Yellen: Crypto Needs \u2018Very Careful Regulation\u2019<\/h2>\n<p>U.S. Treasury Secretary Janet Yellen shared her concerns regarding the implosion of cryptocurrency exchange FTX Saturday in an interview with Bloomberg. She stressed that FTX\u2019s failure has reinforced her view that the crypto market requires \u201cvery careful regulation,\u201d emphasizing that \u201cIt shows the weaknesses of this entire sector.\u201d<\/p>\n<p>Yellen compared crypto markets to developed financial markets with better investor protection rules, adding:<\/p>\n<p>In other regulated exchanges, you would have segregation of customer assets. The notion you could use the deposits of customers of an exchange and lend them to a separate enterprise that you control to do leveraged, risky investments \u2014 that wouldn\u2019t be something that\u2019s allowed.<\/p>\n<p>\u201cAt least it\u2019s not deeply integrated with our banking sector and, at this point, doesn\u2019t pose broader threats to financial stability,\u201d she continued, warning that the FTX debacle could have been worse if digital assets were more embedded in the financial system.<\/p>\n<h2>Fed\u2019s Vice Chair: Crypto Needs \u2018Strong Regulatory Guardrails\u2019<\/h2>\n<p>Federal Reserve Vice Chair Lael Brainard similarly stressed the importance of strong crypto regulation in an interview with Bloomberg Monday.<\/p>\n<p>She noted that the crypto sector has proven to be susceptible to the same risks as traditional finance and should be subject to the same rules. Reiterating her long-held view that crypto finance needs strong regulation, Brainard opined:<\/p>\n<p>It\u2019s really concerning to see that retail investors are really getting hurt by these losses.<\/p>\n<p>The Federal Reserve vice chair added: \u201cDespite a lot of hype \u2026 you heard a lot about how decentralized these markets are \u2026 it turns out they are highly concentrated, highly interconnected, you are just seeing a domino effect, failures from one platform spilling over into elsewhere.\u201d She concluded:<\/p>\n<p>It reinforces I think this need to make sure that crypto finance, because it is no different than traditional finance in the risks that it exposes, needs to be under the regulatory perimeter \u2026 There need to be strong regulatory guardrails.<\/p>\n<p>Following the bankruptcy filing of FTX, a growing number of lawmakers are calling for stricter crypto regulation. The chairman of the U.S. Securities and Exchange Commission (SEC), Gary Gensler, has warned that the crypto field is \u201csignificantly non-compliant.\u201d Last week, the White House and several U.S. senators also called for proper crypto oversight.<\/p>\n<p><em><strong>What do you think about the comments by Treasury Secretary Janet Yellen and Federal Reserve Vice Chair Lael Brainard? Let us know in the comments section below.<\/strong><\/em><\/p>\n<p>Kevin Helms <\/p>\n<p class=\"article__body__author__info__about\">\nA student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.<\/p>\n<p><i class=\"td-icon-font td-icon-mail-1\"\/><\/p>\n<p class=\"images_credits\"><em>Image Credits: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n<p><strong>Disclaimer<\/strong>: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.<\/p>\n<p>More Popular NewsIn Case You Missed It<\/p>\n<p><script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"bitcoin\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script><br \/>\n<br \/><a href=\"https:\/\/news.bitcoin.com\/yellen-says-ftx-collapse-shows-weaknesses-of-entire-crypto-sector-feds-brainard-pushes-for-strong-regulation\/\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>U.S. Treasury Secretary Janet Yellen and Federal Reserve Vice Chair Lael Brainard have stressed the need for strong crypto regulation. Yellen said the FTX collapse shows \u201cthe weaknesses\u201d of the entire crypto sector while Brainard cautioned that failures from one platform are \u201cspilling over into elsewhere.\u201d Yellen: Crypto Needs \u2018Very Careful Regulation\u2019 U.S. Treasury Secretary [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":8576,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_wp_rev_ctl_limit":""},"categories":[1],"tags":[],"class_list":["post-8575","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto-updates"],"_links":{"self":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/8575","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=8575"}],"version-history":[{"count":1,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/8575\/revisions"}],"predecessor-version":[{"id":8577,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/8575\/revisions\/8577"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/media\/8576"}],"wp:attachment":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=8575"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=8575"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=8575"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}