‘Last Minute’ Cryptocurrency Announcement from FED, Europe and USA!

Former US Treasury Secretary Lawrence Summers talked about the collapse of cryptocurrency exchange FTX. In the middle, Congressman Brad Sherman argues that FTX is ‘bypassing the law’ with money. Heavy words from Andrea Enria, Leader of the European Central Bank, to cryptocurrency developers. US Treasury Secretary Janet Yellen said that the FTX collapse exposed weaknesses in crypto. Fed’s Lael Brainard noted that crypto finance needs strong regulation. Keep reading us for details…

Larry Summers compares cryptocurrency exchange FTX to Enron

Former US Treasury Secretary Lawrence Summers compared cryptocurrency exchange FTX to Enron. He stated that the situation is more of a classic scam than the complexity of cryptocurrency regulation. He also noted that the regulatory community should draw two lessons from the collapse of FTX. In this context, Summers made the following statement:

A lot of people likened it to Lehman. I would compare it to Enron. The smartest guys in the room. Not just financial fallacy, but at the same time… breezes of fraud. Stadium names are very early in a company’s history. A massive explosion of wealth, from which no one knows exactly where it came from.

Congressman Brad Sherman: FTX circumvented the law with money

Crypto reverse Congressman Brad Sherman made a statement about the FTX collapse. Sherman said the crypto-opposite stance has been real from the start. He called on the SEC to take decisive action in this direction. Sherman further argued that FTX supports Democrats to influence crypto regulations. He noted that he was justified in calling on the SEC to take action against unregistered exchanges in early 2022.

Sherman also added that he plans to review options for federal crypto legislation with his colleagues in the coming weeks. Sherman argued that millionaire crypto personalities “fill Washington with millions of dollars.”

European Central Bank Leader: Cryptocurrency providers are animals

Andrea Enria, head of financial control at the European Central Bank (ECB), has described Europe-based crypto regulators as a threat to consumer protection. Accordingly, he has spoken heavily against crypto-asset providers. According to the ECB, crypto asset providers “never think about financial risks. Nor do they respect national ends.” Andrea Enria, leader of the ECB’s supervisory mission, voiced:

I’m worried about my colleagues who will have to do this check in the future. Because these are animals with which it is difficult to establish relationships.

Janet Yellen: FTX collapse exposes weaknesses in crypto

The collapse of the FTX exchange caught the attention of regulators around the world. US Treasury Secretary Janet Yellen commented on the collapse of Samuel Bankman-Fried’s multi-billion-dollar stock market and the collapse of the cryptocurrency market. Yellen said the FTX crash exposed “weaknesses” in the crypto ecosystem. Additionally, Yellen noted that the crypto industry needs very careful regulation. Bloomberg reported that US regulators saw the collapse of the FTX exchange as a symptom of the weakness of the crypto sector.

Lael Brainard: Crypto market needs strong regulation

Federal Reserve Deputy Leader Lael Brainard said that the recent disorder in the cryptocurrency market shows that classical finance needs to be tightly regulated, as it is. “It is alarming to see that individual investors are really taking losses from these losses,” Brainard said. He also reiterated his long-held view that crypto finance needs strong regulation. In this context, Brainard made the following statement:

Despite a lot of hype… you’ve heard a lot about how decentralized these markets are. It turns out that these have become quite heavy and are very connected to each other. You only see a domino effect. Failures in one platform spread to another. I think it reinforces the need to make sure that crypto finance is not different from classical finance in terms of the risks it poses, so it has to be within regulatory limits.

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