US Treasury’s Yellen to Voice Her First Speech About Crypto on Thursday

Vignesh Karunanidhi
US Treasury's Yellen to Voice Her First Speech About Crypto on Thursday
Source: The Washington Post

The US Treasury Secretary Janet Yellen will discuss regulation and policy regarding cryptocurrency in Washington DC on Thursday.

In a speech primarily focused on voicing her opinion on digital assets, Yellen will shed insights into what she thinks of crypto.

She will recap on how cryptocurrencies are viewed as an emerging sector of the US economy by the Treasury department.

Joe Biden had recently announced an executive order asking the whole government to focus on specific criteria like consumer protection, financial stability, unlawful uses, and financial inclusion in an effort to regulate the crypto industry.

Additionally, she will also speak about the above-mentioned Joe Biden’s order on crypto regulation.

The US envisions a comprehensive framework

“Secretary Yellen will make a case for a consistent and comprehensive policy framework that promotes responsible innovation of digital assets.”

“She will appropriately assess and mitigate the risks they may pose,” as per the statement issued by the Treasury Department on Tuesday.

The Biden administration and Yellen’s agency have been earmarking a lot of recognition and attention to crypto since the previous year. They have been primarily eyeing stablecoins.

The Treasury Department had a primary role in last year’s President’s Working Group report on Financial Markets.

It served as the government’s first volley in defining guidelines for dollar-backed stablecoins and was drafted in part by the Treasury.

Congress has been given the responsibility to oversee and govern stablecoins similarly to the banks. If they fail, the US regulators will hand over the commitment to the Financial Stability Oversight Council.

In one of the presentations held in April 2018, the top crypto advocates of the time tried to present about cryptocurrencies to Yellen. After the presentation, Yellen expressed her views that crypto is not a viable financial asset and that proper regulation would be a challenge.

She was a tough sell at that time. But the economy is looking forward to less scrutiny and a more viable framework for cryptocurrencies from her speech on Thursday.