The US Treasury Department and Federal Reserve have not yet developed a framework for regulating cryptocurrencies such as bitcoin amid rising concerns that it could become more of a threat to the financial system, Treasury Secretary Steven Mnuchin said.
US Treasury Secretary Janet Yellen said the US lacks an adequate framework to address the various problems associated with cryptocurrencies, such as money laundering and illicit financing. According to them, there is no structure that can create the regulatory framework we need for cryptocurrencies.
Yellen thinks the US doesn’t have a good framework for dealing with cryptocurrencies
Janet Yellen spoke at The Wall Street Journal’s CEO Summit on Tuesday about the regulation of crypto-currencies. A question was asked of the Minister of Finance: Do you think cryptocurrencies will be regulated? Yellen replied:
I don’t think cryptocurrencies are structured enough to deal with the various problems they pose in terms of regulation.
She then listed several issues related to cryptocurrencies, such as money laundering, banking secrecy law, the use of digital currencies for illicit payments, [and] consumer protection.
Yellen noted that different agencies likely have ways to address this issue through regulation. However, the finance minister stressed:
Frankly, I do not think there is a structure in the United States that is up to the task of creating the regulatory framework that we need for the future.
This is a topic worth pondering, she noted.
The finance minister was also asked: What do you think of the digital dollar? Yellen replied: In terms of digital currencies and central bank digital currencies, I know the Federal Reserve is looking at this. She noted that this raises many questions, such as. B. the different ways in which it could be used and the possible problems of financial stability.
Yellen concluded that there is a case for a central bank digital currency, but warned: This is a subject that we must study carefully and be cautious about.
Yellen said in February that bitcoin is highly inefficient and highly speculative. She stressed the importance of the commitment to work with other regulators to develop an effective regulatory framework for cryptocurrencies.
What do you think of Ms. Yellen’s comments on cryptocurrencies? Let us know your comments in the section below.
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