U.S. Treasury Secretary Janet Yellen says that the U.S. does not have an â€œadequate frameworkâ€ to deal with all the different issues posed by cryptocurrencies, such as money laundering and illicit financing. According to her, there is no framework thatâ€™s â€œquite up to the task of putting in place a regulatory framework that we needâ€ for cryptocurrencies.
Yellen Sees No Adequate Framework in the US to Deal With Crypto Issues
Janet Yellen talked about cryptocurrency regulation at The Wall Street Journalâ€™s CEO Council Summit Tuesday. The treasury secretary was asked, â€œDo you anticipate regulations on cryptocurrencies?â€ Yellen replied:
She proceeded to name several issues she sees associated with cryptocurrencies, such as â€œmoney laundering, Bank Secrecy Act, use of digital currencies for illicit payments, [and] consumer protection.â€
Yellen pointed out that â€œthere are several agencies that arguably have some ability to address this through regulation.â€ However, the treasury secretary emphasized:
â€œThatâ€™s a topic thatâ€™s well worth addressing,â€ she noted.
The treasury secretary was also asked, â€œWhat are your thoughts on the digital dollar?â€ Yellen replied: â€œWith respect to digital currencies and central bank digital currencies, I know the Federal Reserve is looking at this.â€ She noted that â€œthere are a lot of issues in connection with it,â€ such as â€œdifferent ways in which that could be rolled outâ€ and the â€œpotential financial stability issues associated with it.â€
In conclusion, Yellen stated that â€œThere could be an argument for a central bank digital currency,â€ but cautioned, â€œItâ€™s something we need to study carefully and be careful about.â€
In February, Yellen said bitcoin is â€œextremely inefficientâ€ and â€œhighly speculative.â€ She stressed the importance of promised to work with other regulators to develop an â€œeffectiveâ€ regulatory framework for cryptocurrencies.
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