Treasury Secretary Janet Yellen said the recent collapse of a major cryptocurrency exchange highlights the need for better oversight of crypto markets.
CBS News reported Bahamas-based cryptocurrency exchange FTX recently filed for bankruptcy and is now under investigation over possible securities violations.
Yellen said in a statement published Wednesday the Department of the Treasury collaborated with other regulatory agencies in the past year and identified risks related to crypto markets, including conflicts of interest, lack of transparency and comingling of client assets.
“We have very strong investor and consumer protection laws for most of our financial products and markets that are designed to address these risks. Where existing regulations apply, they must be enforced rigorously so that the same protections and principles apply to crypto assets and services,” she noted.
She said the federal government and Congress should speed up efforts to address any regulatory gaps in cryptocurrency markets.
In an interview with CBS News, the Treasury chief called on consumers and investors to “be extremely careful” when investing in the crypto finance space, which she said lacks “appropriate supervision and regulation.”