{"id":8889,"date":"2022-12-01T11:07:39","date_gmt":"2022-12-01T11:07:39","guid":{"rendered":"http:\/\/cryptoheretostay.com\/?p=8889"},"modified":"2022-12-01T11:07:39","modified_gmt":"2022-12-01T11:07:39","slug":"us-treasurys-yellen-says-crypto-doesnt-have-adequate-regulation-calls-ftx-collapse-a-lehman-moment","status":"publish","type":"post","link":"https:\/\/cryptoheretostay.com\/?p=8889","title":{"rendered":"US Treasury&#8217;s Yellen Says Crypto Doesn&#8217;t Have Adequate Regulation \u2014 Calls FTX Collapse &#8216;a Lehman Moment&#8217;"},"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 says that the collapse of crypto exchange FTX shows that the crypto industry \u201creally needs to have adequate regulation.\u201d She added: \u201cIt\u2019s a Lehman moment within crypto, and crypto is big enough that we\u2019ve had substantial harm with investors.\u201d<\/strong><\/p>\n<h2>Treasury Secretary Janet Yellen on FTX Implosion and the Need for Adequate Crypto Regulation<\/h2>\n<p>U.S. Treasury Secretary Janet Yellen talked about the need for adequate crypto regulation following the collapse of crypto exchange FTX at an event hosted by the New York Times Dealbook Wednesday. She said:<\/p>\n<p>I have been skeptical, and I remain quite skeptical.<\/p>\n<p>While emphasizing the importance of ensuring that crypto assets have adequate customer protections, the treasury secretary noted that it is also important to remain open to financial innovations, particularly those that could lower cross-border transaction costs and help improve financial inclusion.<\/p>\n<p>Yellen proceeded to comment about the meltdown of FTX, which filed for bankruptcy on Nov. 11. The crypto exchange owes its 50 biggest creditors more than $3 billion, and an estimated one million customers and other investors are facing total losses in the billions of dollars due to its collapse. She opined:<\/p>\n<p>I think everything we\u2019ve lived through over the last couple of weeks, but earlier as well, says this is an industry that really needs to have adequate regulation. And it doesn\u2019t.<\/p>\n<p>The treasury secretary also revealed that the U.S. is discussing cryptocurrency regulations with allies and the Treasury Department has mapped out \u201csignificant\u201d concerns regarding crypto. She noted that ensuring the protection of customer assets and segregation of those assets are among top priorities.<\/p>\n<p>Yellen likened the FTX implosion to the collapse of Lehman Brothers. The investment bank filed for Chapter 11 bankruptcy in 2008, which triggered a huge stock market downturn and led to a $700 billion bailout by the U.S. government. Yellen described:<\/p>\n<p>It\u2019s a Lehman moment within crypto, and crypto is big enough that we\u2019ve had substantial harm with investors.<\/p>\n<p>Nonetheless, she noted that the FTX meltdown \u201chasn\u2019t spilled over to the banking sector,\u201d emphasizing that \u201cBanking regulators have been very careful about crypto.\u201d<\/p>\n<p>Earlier this month, Yellen said FTX\u2019s failure has reinforced her view that the crypto market requires \u201cvery careful regulation,\u201d noting that \u201cIt shows the weaknesses of this entire sector.\u201d She explained: \u201cIn 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.\u201d<\/p>\n<p><em><strong>What do you think about the comments by U.S. Treasury Secretary Janet Yellen? 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\/us-treasurys-yellen-says-crypto-doesnt-have-adequate-regulation-calls-ftx-collapse-a-lehman-moment\/\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>U.S. Treasury Secretary Janet Yellen says that the collapse of crypto exchange FTX shows that the crypto industry \u201creally needs to have adequate regulation.\u201d She added: \u201cIt\u2019s a Lehman moment within crypto, and crypto is big enough that we\u2019ve had substantial harm with investors.\u201d Treasury Secretary Janet Yellen on FTX Implosion and the Need for [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":8890,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_wp_rev_ctl_limit":""},"categories":[1],"tags":[],"class_list":["post-8889","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\/8889","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=8889"}],"version-history":[{"count":1,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/8889\/revisions"}],"predecessor-version":[{"id":8891,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/8889\/revisions\/8891"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/media\/8890"}],"wp:attachment":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=8889"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=8889"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=8889"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}