Crypto regulation should aim to avoid financial system disruption: Treasury Secretary Janet Yellen
United States Treasury Secretary Janet Yellen expressed his ideas regarding the regulation of cryptocurrencies such as Bitcoin BTC/USD during a speech on the politics of digital assets at the American University of Washington.
What happened: Yellen said the U.S. crypto regulatory framework “should be designed to support responsible innovation while managing risk,” according to a Thursday Reuters report. report.
Among these risks, she highlighted “especially those that could disrupt the financial system and the economy”.
Yellen said that “as banks and other traditional financial firms become more involved in digital asset markets, regulatory frameworks will need to appropriately reflect the risks of these new activities.”
The regulatory framework for crypto in the United States remains insufficient at best, and regulators are still unsure of the best approach to oversee platforms and services operating in this sector, including traditional banking services such as custody.
Some lawmakers are pushing for a crackdown on the industry because of its extreme volatility, but Yellen said “responsible innovation” deserves its place in the United States.
In late March, she also acknowledged that crypto had grown in “leaps and bounds” and now played a “significant role” in the investment decisions of many Americans.
Treasury Secretary Janet Yellen. Benzinga file photo by Dustin Blichok.