US Treasury Secretary Janet Yellen has said the FTX incident has showed that the cryptocurrency industry needs “very careful regulation.” According to her:
“This shows the weaknesses of the entire sector.”
Yellen has added that the consequences of the collapse of the empire of Sam Bankman-Fried could be worse if the cryptocurrency market was more closely intertwined with the traditional financial system.
She has added:
“At least it is not as deeply integrated with our banking sector and does not pose more serious threats to financial stability at the moment.”
US House of Representatives member Brad Sherman has previously accused crypto billionaires of lobbying their interests in Washington to curb regulation of the digital asset industry. He has called for an investigation into the FTX crisis and recalled the involvement of structures associated with Bankman-Fried in support of politicians.