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FTX Collapse Exposed 'Weaknesses' in Crypto, Janet Yellen Says: Report
The U.S. Treasury Secretary said the crypto sector is in need of "very careful regulation" while some lawmakers are already preparing to propose tougher rules.
Updated Nov 14, 2022, 12:57 p.m. Published Nov 14, 2022, 12:57 p.m.
In the aftermath of crypto exchange FTX's fall from grace, U.S. Treasury Secretary Janet Yellen said the industry needs "very careful regulation," Bloomberg reported Saturday.
“It shows the weaknesses of this entire sector,” Yellen said referring to the collapse of Sam Bankman-Fried's multibillion dollar enterprise – the same one that was, just months ago, looking to rescue other embattled crypto firms from the market crash earlier this year.
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The U.S. government is already looking into regulating the industry under an executive order from President Joe Biden.
In the months leading up to the collapse, Bankman-Fried said he'd spent time conversing with lawmakers and regulators in Washington D.C. ahead of midterm elections. But after the exchange was locked in a liquidity crunch and quickly unraveled, Sen. Sherrod Brown and and Sen. Elizabeth Warren called for investigations.
Read more: Democrats Keep the US Senate but Crypto Only Has Eyes for FTX Collapse
Congressman and crypto skeptic Brad Sherman says he will work with his colleagues at the House of Representatives to "examine options for federal legislation."
The effects of FTX's collapse could have been worse if crypto was more connected to the traditional financial system, Yellen said.
“At least it’s not deeply integrated with our banking sector and, at this point, doesn’t pose broader threats to financial stability,” Yellen told Bloomberg.
Read more: SEC Commissioner Hester Peirce: FTX’s Collapse Could Finally Be ‘Catalyst’ for Regulation
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What to know:
- As of October 2025, GoPlus has generated $4.7M in total revenue across its product lines. The GoPlus App is the primary revenue driver, contributing $2.5M (approx. 53%), followed by the SafeToken Protocol at $1.7M.
- GoPlus Intelligence's Token Security API averaged 717 million monthly calls year-to-date in 2025 , with a peak of nearly 1 billion calls in February 2025. Total blockchain-level requests, including transaction simulations, averaged an additional 350 million per month.
- Since its January 2025 launch , the $GPS token has registered over $5B in total spot volume and $10B in derivatives volume in 2025. Monthly spot volume peaked in March 2025 at over $1.1B , while derivatives volume peaked the same month at over $4B.
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CFTC Launches Digital Assets Pilot Allowing Bitcoin, Ether and USDC as Collateral
Acting Chair Caroline Pham has unveiled a first-of-its-kind U.S. program to permit tokenized collateral in derivatives markets, citing "clear guardrails" for firms.
What to know:
- The CFTC has launched a pilot program allowing BTC, ETH and USDC to be used as collateral in U.S. derivatives markets.
- The program is aimed at approved futures commission merchants and includes strict custody, reporting and oversight requirements.
- The agency also issued updated guidance for tokenized assets and withdrew outdated restrictions following the GENIUS Act.
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