Washington, D.C. – U.S. Treasury Secretary Janet Yellen has expressed ongoing "concerns" regarding recent crypto legislation, emphasizing the critical need for a comprehensive regulatory framework to mitigate risks within the rapidly evolving digital asset market. Her remarks, highlighted by CoinDesk in a recent tweet, underscore a consistent call for Congress to address regulatory gaps, particularly concerning stablecoins and non-security crypto assets.
Yellen has consistently advocated for legislation to provide clarity and oversight in the cryptocurrency space. According to the tweet from CoinDesk, she claims to have "concerns" about current legislative efforts. This stance aligns with her previous statements stressing the importance of protecting consumers and ensuring financial stability amidst the growth of digital currencies.
Her concerns stem from various risks, including illicit finance, potential "runs" on crypto-asset platforms, and the proliferation of entities operating outside existing regulatory boundaries. Yellen has previously cited instances like the collapse of major cryptocurrency exchanges as demonstrations of the sector's inherent weaknesses and the urgent need for more effective oversight. She has also highlighted the potential for digital assets to be used for money laundering and terrorist financing.
The Treasury Secretary has specifically urged Congress to pass legislation for stablecoins, which are pegged to stable assets like the U.S. dollar, and for the spot market of crypto assets not classified as securities. She believes that while existing rules should be enforced, new laws are essential to cover areas where current regulations are insufficient. This approach aims to create a "federal regulatory floor" for digital assets.
Despite Yellen's persistent calls, legislative progress on cryptocurrency regulation has been slow, often hampered by a divided Congress. However, a growing momentum exists among policymakers to establish a clearer regulatory environment, with some bipartisan efforts in the House of Representatives aligning with Yellen's objectives for market structure and regulation. The push for a robust framework seeks to balance fostering innovation with safeguarding the financial system and investors.