US Treasury Secretary Janet Yellen emphasizes the need for a robust regulatory framework for cryptocurrency during a G20 conference for finance ministers and central bank governors. Yellen added that “we have not proposed an outright ban.”
Janet Yellen Crypto Regulation – Need for a Solid Framework
US Treasury Secretary Janet Yellen gave an interview on cryptocurrency regulation to Reuters on the sidelines of the G20 meeting of finance ministers and central bank governors at the Indian Presidency in Bangalore on Saturday.
Yellen stressed the importance of putting in place a strong regulatory framework for cryptocurrencies and clarified that the US had not proposed an outright ban. The Treasury Secretary said:
We have not advocated an entire ban on crypto-related activities, but it is important to establish a strong regulatory framework. We are working with other governments.
Cryptocurrency regulation was one of the key topics discussed by G20 central bankers and finance ministers. India, the host of the G20 summit this weekend, had been lobbying for global cooperation in the regulation of cryptocurrencies. Indian Finance Minister Nirmala Sitharaman said that G20 members were discussing cryptocurrency regulation after months of detailed discussions.
In the United States, the Securities and Exchange Commission has ramped up enforcement of cryptocurrency companies in recent years. The SEC recently charged cryptocurrency exchange Kraken for its staking programs and issued a cease-and-desist order to stablecoin Binance USD (BUSD). The securities regulator also charged Terraform Labs and its CEO Do Kwon for deceiving investors.
IMF Managing Director Kristalina Georgieva also mentioned that cryptocurrencies need “more regulation” during the G20 summit this weekend. She said that there should be a “very strong push for regulation” and added that “if regulation fails, if they are slow to act, then we should not raise the ban on these assets, because they can create financial stability risk.”
This week, the IMF executive board also provided guidance to countries to develop effective crypto policies. Some directors of the executive board believed that “outright bans should not be ruled out.” Moreover, according to the board, “Crypto assets should not be given official currency or legal tender status.”
What are your thoughts on Treasury Secretary Janet Yellen’s statement on cryptocurrency? Let us know in the comment section.
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