Treasury Secretary Janet Yellen To Discuss Crypto Policy and Regulation
- Treasury Secretary Yellen to talk on digital assets for the first time.
- The official will discuss on ‘comprehensive policy framework’ and regulation.
- She will also outline Treasury’s view on cryptos and their uses in the economy.
The US Treasury Secretary Janet Yellen will deliver her first talk dedicated to cryptocurrencies on Thursday.
Focus on Crypto Policy and Regulation
Per a statement released by the Treasury Department on Tuesday, Yellen will call for a “comprehensive policy framework” for cryptos.
“Secretary Yellen will make the case for a consistent and comprehensive policy framework that promotes responsible innovation of digital assets and appropriately assesses and mitigates the risks they may pose.”
She will stress her department’s stance on cryptos and possible steps the Treasury could take to study its use cases and role as an emerging part of the US economy.
Yellen’s Thursday speech at American University in Washington, DC, is expected to cover crypto regulations and echo President Biden’s executive order emphasizing further scrutiny on cryptocurrencies.
Though a critic, Yellen is not Against Crypto
Yellen has often been framed as an enemy of crypto, but her thoughts have relaxed in recent months.
The financial behemoth has previously expressed concerns mainly on the misuse of digital assets, including Bitcoin’s potential for funding questionable activities and its environmental impact.
Last year, she was quoted saying that cryptos are a particular concern, and many are used “mainly for illicit financing.” She added that,
“I think we really need to examine ways in which we can curtail their use and make sure that money laundering doesn’t occur through those channels.”
She was also skeptical about her view on whether the Federal Reserve should create a central bank digital currency (CBDC) or a FedCoin. She noted that such a move would require a broader consensus among Congress, the Fed, and the White House.
“I see both pros and cons to doing it. And my mind is not made up about this,” Yellen said.
In a recent CNBC interview, she showed her ‘pro-crypto’ stance and publicly acknowledged the potential of digital currencies and blockchain technology. She said,
“Crypto has obviously grown by leaps and bounds. And it’s now playing a significant role, not really so much in transactions, but in investment decisions of lots of Americans.”
"I have a little bit of skepticism," says @SecYellen on #crypto. "On the other hand there are benefits from crypto and we recognize innovation in the payment systems can be a healthy thing," pic.twitter.com/7N1SYxICwq
— Squawk Box (@SquawkCNBC) March 25, 2022
Additionally, Yellen said in March how the Treasury would act to the provisions of Biden’s EO. The document released by the Secretary, later removed by the website, revealed previous undisclosed insights on the long-anticipated President’s EO on digital assets.
Her statement read that the EO could “result in substantial benefits for the nation, consumers, and businesses,” her statement read. It further said,
“[The EO] will also address risks related to illicit finance, protecting consumers and investors, and preventing threats to the financial system and broader economy.”