• Janet Yellen claims the crypto industry needs “additional regulation” to plug “holes.”
• The U.S. Treasury Department has conducted reviews of the crypto sector and identified risks for consumers and investors.
• Yellen believes some current laws provide sufficient oversight, but there are still “holes in the system” that need to be filled with new rules.
Treasury Secretary Claims Crypto Industry Needs Regulation
U.S. Treasury Secretary Janet Yellen recently stated that additional regulation was needed to protect consumers and investors from the inherent risks present in the cryptocurrency industry during an appearance on CNBC’s Squawk Box on June 7th. She noted that a thorough review of the sector had been conducted by the department under an executive order of President Biden which identified many potential risks for those involved in crypto-related activities.
Current Laws Provide Oversight But Need Improvement
Yellen acknowledged that certain existing laws do provide sufficient oversight and enforcement authorities such as the SEC and CFTC have adequate tools at their disposal but she added that there were still holes in this system which needed to be plugged with new regulations and rules. She did not make any specific suggestions about what kind of changes should be made but simply stated her belief that it was necessary for further protections to be put in place within this area of finance.
Risks Include Money Laundering And Terrorism Financing
The risks present within the cryptocurrency industry extend far beyond just price volatility or hacks on exchanges or wallets as some major concerns include money laundering, terrorism financing, investor frauds, manipulative trading practices, cybercrimes, and more recently stablecoins have come under scrutiny due to their potential impact on global financial stability if they were ever released without proper regulatory supervision in place beforehand.
Need For International Cooperation To Establish Regulation
Yellen also highlighted the need for international cooperation when it comes to establishing regulations across different jurisdictions as one country cannot effectively regulate an asset class which does not respect national borders or currency boundaries like cryptocurrencies do by nature; she said: “It’s important we have a unified approach among nations so there aren’t gaps exploited by bad actors“. This is something which many governments around the world are currently trying to work towards achieving with varying levels of success so far given how complex this task can be due its multi-faceted nature involving technological, legal, economic, political aspects etcetera all at once across multiple countries simultaneously – it won’t be easy!
Uncertain Future For Cryptocurrency Regulations
It remains unclear what shape any future regulations will take for cryptocurrencies at this stage but it is clear from Yellen’s statements that they are inevitable regardless; whether these will ultimately help foster wider adoption or hamper progress remains open to debate depending on who you ask within this space right now though time shall tell!
