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Treasury Sec. Janet Yellen speaks crypto policy and regulation: Full insight

Updated: Jul 25, 2024
Published: Apr 8, 2022
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According to a press release, U.S. Treasury Secretary Jenet L. Yellen spoke on April 7 at American University's Kogod School of Business Center for Innovation about crypto policy, regulation, development, and innovation.

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Remarks from Yellen

It is clear from the Treasury Secretary's statements that she shares some views similar to those of other regulators, such as the Chairman of SEC, Gary Gensler, who also recently commented on cryptocurrencies. Yellen, who had earlier called for quick action on stablecoins regulation in the U.S., which are already being regulated in the U.K., said that the "growth in digital services has opened a world of possibilities and risks that would have seemed fantastical only a few decades ago."

Yellen spoke about the Executive Order on cryptocurrencies issued a few weeks ago, saying that "the administration will publish a report on the future of money and payments. The report will analyze possible design choices related to a potential CBDC and implications for payment systems, economic growth, financial stability, financial inclusion, and national security."

While speaking about CBDCs, she also stated that issuing CBDCs "will present a major design and engineering challenge that would take years of development, not months." Yellen also noted that Treasury has worked with the President's Working Group on Financial Markets, the FDIC, and the OCC to study dollar-pegged stablecoins, which are known to chase a single value throughout their existence.

"Stablecoins raise policy concerns, including illicit finance, user protection, and systemic risk. And they are currently subject to inconsistent and fragmented oversight" - Janet Yellen.

Responsible innovation and tech neutrality

Just like the chairman of SEC, Gary Gensler, Yellen also pointed out that a "technology-neutral" step is needed to regulate the crypto industry. Both want to protect investors' money by bringing fairness to the market and irradiating the crypto industry's frauds and money laundering attempts.

According to Yellen, the principle of technology neutrality also applies to problems related to tax evasion, illicit financing, and national security issues that are particularly relevant in today's world. She stated the obvious, explaining that it is illegal to evade taxes, launder money, or evade sanctions. It does not matter if you use checks, wire transfers, or cryptocurrencies.

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