Crypto: “Stricter regulation”, demands Yellen

For many, the failure of the FTX exchange called many things in the cryptosphere into question. One of them is how cryptos should be regulated. For several legislators, much stricter regulations must be put in place to protect investors. But US Treasury Secretary Janet Yellen disagrees.

Cryptos, an industry full of weaknesses?

According to an article published on November 14 on corner deskTreasury Secretary Janet Yellen said that the collapse of FTX highlighted the weak points of the crypto sector. She has precisely declared about this event: This shows the weaknesses of this whole sector“. In this context, the manager thinks that this sector needs a“very careful regulation“. This suggests that she prefers that the legislators bet on caution rather than they persist in putting in place rules that are too strict.

The manager was criticized on social media for saying this

It should be remembered that before the collapse of his empire, Sam Bankman-Fried (SBF) had declared that he was talking to the authorities. He was talking hands-on with lawmakers and regulators in Washington DC ahead of the midterm elections. Even so, as soon as the crypto exchange began collapsing from lack of liquidity, Senators Sherrod Brown and Elizabeth Warren had him investigated.

This day when everything changed for SBF!

Just a few months ago, Sam Bankman-Fried was emerging as a philanthropist in the crypto sector. In fact, he had committed to saving multiple crypto businesses in trouble because of the downtrend. In particular, he decided to use FTX to help his company Alameda Research recover. At the beginning of the month, we learned that the latter is mainly based on the native token of FTX which is FTT.

Bankman-Fried played down the extent of the problem, even when he saw more and more withdrawals on FTX. But the situation quickly turned into a real nightmare on Monday, November 7. Several large investors had decided to withdraw their funds in FTT tokens. FTX couldn’t take it anymore, decided to stop withdrawals. Very quickly, the situation worsened and the crypto exchange finally filed for bankruptcy.

Currently, the US government is working for the regulation of the crypto sector, under an executive order from President Joe Biden. With the collapse of the FTX exchange, Treasury Secretary Janet Yellen believes the new industry will need to be regulated very carefully.

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