YEREVAN (CoinChapter.com) — US Treasury Secretary Janet Yellen has urged Congress to pass legislation aimed at regulating the cryptocurrency industry. Her calls come amid concerns of potential risks associated with digital assets, including price volatility and non-compliance.
Moreover, Yellen urged lawmakers to act to bring regulation that will establish Federal oversight over companies issuing stablecoins.
Calls by Janet Yellen for crypto regislation timely
The Treasury Secretary, who leads the Financial Stability Oversight Council, was appearing in front of the House Financial Services Committee to discuss the council’s latest annual report.
“Applicable rules and regulations should be enforced, and Congress should pass legislation to provide for the regulation of stablecoins, and of the spot market for crypto assets that are not securities. We look forward to continuing to engage with Congress on this,”
Yellen said.
Janet Yellen’s call for crypto legislation follows concerns recently raised by Commodity Futures Trading Commission (CFTC) chair.
Reacting to the Securities and Exchange Commission’s (SEC) approval of 11 spot Bitcoin ETFs, Rostin Behnman suggested that such approvals could introduce additional risks to digital asset spot markets.
The CFTC, while having limited authority over these markets, has been involved in numerous actions related to digital asset commodities.
Treasury Secretary’s Crypto track record
Janet Yellen has been a vocal crypto of cryptocurrencies. Earlier, she had described the rise of cryptocurrencies as a concern, particularly highlighting the risks they may pose to financial stability.
Her criticism became more vocal after the collapse of the FTX exchange, which she compared to the “Lehman moment” for cryptocurrencies. At the time, she had emphasized the federal government’s need to quickly fill regulatory gaps in the crypto sector.
In February 2021, Yellen claimed Bitcoin was an “extremely inefficient way of conducting transactions.” Moreover, she said she did not believe BTC was used ” often for illicit finance” rather than “as a transaction mechanism.”
With the US still lacking necessary crypto legislation, Yellen’s calls to Congress are timely. Several major crypto firms, including Binance, Ripple, and Coinbase, are currently under regulatory radar.
Clarity in the crypto market will help in its development, creating a safe and conducive environment for Bitcoin and Co.
