The crypto currency market is rife with fraud, failures to comply with existing laws and big swings in volatility, but the recent implosion of digital currency exchange FTX hasn’t hampered the broader financial system, according to a report released Friday by Treasury’s Financial Stability Oversight Committee.”FTX is a shock to that market,” a Treasury official said, adding that the bankruptcy underscores the committee’s concern about crypto highlighted in a report it released in October. The committee, which was created after the financial crisis to identify looming risks to the financial system, reiterated its call for Congress to pass legislation that allows U.S. regulators to police spot markets for crypto assets that aren’t securities.The council also said lawmakers need to address regulatory arbitrage, when companies take adva …
