US Treasury Secretary Janet Yellen says it is “critical to put in place a strong regulatory framework” for cryptocurrencies on the sidelines of the G20 meeting for finance ministers and central bank governors. “We have not suggested a complete ban on crypto activities,” Yellen added.
Janet Yellen on ‘strong’ crypto regulation
US Treasury Secretary Janet Yellen discussed crypto regulation in an interview with Reuters on the sidelines of the G20 meeting for finance ministers and central bank governors under the Indian presidency in Bangalore on Saturday.
Yellen stressed the importance of establishing a strong regulatory framework for cryptocurrencies and clarified that the US has not proposed an outright ban. The Treasury Secretary said:
We have not suggested a complete ban on crypto activities, but it is essential to establish a strong regulatory framework… We are working with other governments.
Crypto regulation was among the key issues discussed by G20 finance ministers and central bankers under the Indian presidency this weekend. During the meeting, India asked the International Monetary Fund (IMF) and the Financial Stability Board (FSB) to develop a joint paper on crypto to help formulate “a coordinated and comprehensive policy approach for crypto assets.”
India’s Finance Minister Nirmala Sitharaman has been pushing for months for international cooperation in regulating cryptocurrencies. She said ahead of the G20 meeting that India was having “detailed discussions” with G20 members on cryptocurrency regulation to establish a technology-driven regulatory framework or standard operating procedure (SOP) on cryptocurrencies.
In the US, the Securities and Exchange Commission (SEC) has recently intensified its enforcement efforts against cryptocurrency companies. The SEC recently indicted crypto exchange Kraken for its staking program and Nexo for its issuance of the Binance USD (BUSD) stablecoin. The securities regulator also accused Terraform Labs and CEO Do Kwon of defrauding investors.
IMF Managing Director Kristalina Georgieva also said on the sidelines of the G20 meeting this weekend that cryptocurrencies need “more regulation.” While she noted that there must be a “very strong push for regulation”, she said: “If regulation fails, if they are slow to fail, then we should not lift the ban on those assets, because they can create financial stability.” risk.”
Additionally, the IMF executive board provided guidance this week to help countries develop effective crypto policies. Some executive board directors thought that “outright bans should not be ruled out.” Furthermore, the board advised: “Crypto assets should not be given official currency or legal tender status.”
What do you think of Treasury Secretary Janet Yellen’s statement on cryptocurrencies? Let us know in the comments section.
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