Treasury Secretary Janet Yellen said the collapse of the FTX was “a Lehman moment” for the digital asset sector.
Speaking at the New York Times’ Dealbook Summit, Yellen made reference to the collapse of the Lehman Brothers bank that set off the 2008 crisis.
Janet Yellen Gave the Example of Lehman Brothers
US Treasury Secretary Yellen said the following about the FTX collapse:
“There was a Lehman moment in crypto. This is a bad thing that can harm investors, especially people who do not know much about the risks they are taking on.”
Referring to Sam Bankman-Fried, FTX and Alameda Research, Yellen pointed out the need for regulations:
“He has consistently promoted the closing of regulatory loopholes. There is no better example than his (SBF) company.”
A few months ago, the Financial Stability Oversight Council, which Yellen chairs, recommended continuing the implementation of existing financial laws governing digital assets before the FTX collapse.
Janet Yellen said it is positive that digital assets have not entered the banking sector too much:
“As you can see, the good thing about the explosion is that it has not spread to the banking sector. The banking regulators have been very careful.”
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