Yellen calls for proper crypto innovation amid Terra`s fall

Janet Yellen has made some thoughtful remarks about the proper way to regulate digital currencies and assets, innovation, and their rules. The current gloomy environment surrounding the crypto market necessitates government regulation of the cryptocurrency industry.

In a recent interview, the Treasury Secretary, Janet Yellen, noted the financial services sector’s incredible growth from $14 billion to $3 trillion within five years and its origins, a clear indication that the industry should be regulated since it appears to be here for the long haul.

Yellen calls for responsible crypto innovation

Key government officials have used the fall of Terra LUNA as a weapon of argument to control and regulate the cryptocurrency market. In addition, the solutions provided by Terra’s CEO have left the crypto market in ruins. Governments and prominent figures in the cryptocurrency world have condemned this blunder.

The price of UST plummeted when the peg to the US dollar was broken, putting tremendous strain on Luna to keep its value up. This was due to how Terraform designed the two tokens to interact, resulting in a large supply spike for Luna and a severe price drop. The number of coins in Luna’s vault rose from 340 million to 6.5 trillion in a few days. At the same time, its price plummeted from $60 to less than a penny.