In light of the rising legal cases against major cryptocurrency platforms Coinbase and Binance, U.S. Treasury Secretary Janet Yellen called for enhanced regulation to protect cryptocurrency users and investors.
During an interview with CNBC, Secretary Yellen expressed her public support for U.S. financial regulatory agencies, including the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC), in their ongoing efforts to ensure the safety of crypto users and investors. These comments followed the recent legal proceedings initiated against crypto industry titans, Coinbase and Binance. However, Yellen refrained from commenting directly on these specific lawsuits.
Intriguingly, Yellen’s statements echo a report from the Financial Stability Oversight Council (FSOC), of which she is also the chair. The FSOC, in October last year, indicated that under certain circumstances, cryptocurrencies could pose a threat to U.S. financial stability.
Yellen acknowledged gaps in current crypto regulations and stressed the need for their rectification. She encouraged Congress to enact more stringent regulations for crypto enterprises. Yellen proposes a collaborative approach between the Treasury Department and Congress could yield more effective crypto legislation.
Despite these calls for action, Congress has yet to pass any legislation pertaining to cryptocurrencies. The absence of any enacted bill so far can be attributed to a noticeable partisan divide on crypto-related matters.