Yellen calls for a stronger regulation of the cryptocurrency industry

Since banks and other traditional financial companies are more involved in the markets for digital assets, the regulatory framework must adequately reflect the risks of these new activities.

and new types of intermediaries, such as: B. Digital Asset Exchanges and other digital native intermediaries should be subject to reasonable forms of supervision. ”

Yellen, a former chairman of the US Federal Reserve, was a convinced critic of cryptocurrency for a long time. She even openly explained that she was not a fan of Bitcoin at all.

Your opinion seems to have changed slightly after confirming the crypto order of biden. At the end of the last month Yellen said that she is now seeing healthy innovations in the industry, even though she has some concerns.

yellen: cryptocurrency requires comprehensive regulatory framework

After the green light of the president, the United States is now one of the over 100 countries that research digital currencies of the central banks (CBDCS). Yellen noticed that such a currency will probably "require years of development, not months". China's digital Yuan is currently the most advanced and has now entered his third test round.

Apart from a digital dollar, America now has a crypto tax policy as part of the financing of its infrastructure calculation of $ 1 trillion. The congress also adopted a law on the reporting obligations of people in the digital asset industry.

But even with this confirmation, leading personalities in the USA and other nations are concerned about making crypto easier worldwide. Just three days ago, Germany, the largest Darknet marketplace, reached through and confiscated Bitcoin worth $ 25 million. The USA sanctioned the website, in addition to Garantex, a cryptocurrency exchange that is accused of collecting ransomware payments.

In her recent speech, Yellen warned that "financial innovations of the past did not benefit the working families too often and sometimes intensified inequality". She also noted that her department is working with other legislators to regulate stable coins.

they regulate without drowning the technology

In addition, she called for the creation of "technology-neutral" regulations to protect companies and consumers without suffocating innovations. "In many cases, the regulatory authorities have powers with which they can promote these goals, and the finance ministry supports these efforts," said Yellen .

If there are no gaps, we will issue political recommendations, including the assessment of potential regulatory measures and changes in the law.