US Treasury Secretary Calls for Better Oversight of the Crypto Industry

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U.S. Treasury Secretary Janet Yellen said that the collapse of the FTX cryptocurrency exchange once again demonstrated the need for more careful oversight of the crypto industry.

Janet Yellen referred to some reports prepared by the US Treasury Department, which reflected many factors that played a role in the collapse of the crypto exchange.According to her, if politicians had paid due attention to these reports, the trouble could have been avoided.

"Much of what was discussed last week in the cryptocurrency and other communities was reflected in our reports long before the situation itself.Mixing client assets, conflicts of interest, and lack of transparency were all in our reports," saysYellen.

Much of the blame for what happened lies with federal regulators, who failed to catch on in time and did not use existing laws to prevent market turmoil, she said.Now, Yellen believes, all financial regulators and lawmakers need to step up to quickly take action to regulate the crypto market.

The Minister of Finance noted that it is not yet necessary to develop fundamentally new laws for the crypto industry - existing laws are suitableBut they must be strictly observed, otherwise there will be consequencesmore destructive and far-reaching.

Former Shark Tank host KevinKevin O'Leary said his investment in FTX has reached zero and he has no plans to invest in the cryptocurrency again until laws are put in place to prevent defaults.