U.S. politicians are calling for stricter regulations on the crypto industry as a result of the FTX bankruptcy and potential fraud.
“It shows the weaknesses of this entire sector,” Secretary of the Treasury Janet Yellen told Bloomberg on Nov. 12, emphasizing the need for “very careful regulation.”
“The notion you could use the deposits of customers of an exchange and lend them to a separate enterprise that you control to do leveraged, risky investments—that wouldn’t be something that’s allowed,” Yellen continued, referring to reports that FTX loaned customer funds to sister company Alameda Research, a self-described “crypto trading firm.”…