- Janet Yellen reiterated her position that cryptocurrencies need more regulation
- She wants Congress to pass new measures
- Yellen said she sees holes in the system
In an appearance on CNBC, former Fed chief and United States Treasury Secretary Janet Yellen said the cryptocurrency sector needs regulation. In her statement, Yellen noted that certain risks associated with cryptocurrency assets have been identified. She also expressed a desire to work with Congress to develop new regulatory rules.
“I see some holes in the system where additional regulation would be appropriate,” Yellen said.
In addition, Janet also said she actively supports using existing regulators to protect investors.
Yellen’s comments were an expected response. After the FTX collapse, the U.S. Treasury secretary said regulators should strictly adhere to existing rules and Congress should act quickly to fill regulatory gaps.
And today’s comments came after the SEC announced it was filing lawsuits against Binance and Coinbase this week. Pointed out that these companies allegedly violated the country’s securities laws.
Last week, Commodity Futures Trading Commission chairman, Rostin Behnam, said it would take time to create and implement new legislation regarding digital assets. In his opinion, it may take about 3-4 years. Provided new funding is appropriated by Congress, the term is reduced to one or two years. Thus already two senior officials are calling on Congress to regulate the cryptocurrency sector.
In this way, two high-ranking officials are calling on Congress to regulate the cryptocurrency sector.