Janet Yellen claims crypto industry needs ‘additional regulation’ to plug ‘holes’

US Treasury Secretary Janet Yellen has said that “additional regulation” is needed to ensure that consumers and investors are protected from the “intrinsic” risks that exist in the cryptocurrency industry.

Yellen said at the press conference. exterior At CNBC’s Squawk Box on June 7th.

system hole

He said the Treasury Department has conducted a thorough investigation of the cryptocurrency sector under an executive order in recent months and has “identified a number of risks” for consumers and investors.

Yellen said that some of these risks could be exposed to U.S. regulation because current law provides ample oversight and regulators such as the SEC and CFTC have the necessary “tools” to address them. He said it could be managed by the system.

But she added that there are “holes in the system” that need to be closed by the new rules.

Yellen did not elaborate on which areas could be improved, nor did she elaborate on what the new rules would look like. she said:

“We look forward to working with Congress to pass additional regulations,” he said.

SEC Action Appropriate

Yellen was also asked to speak about recent SEC actions against Binance and Coinbase, two of the largest cryptocurrency exchanges on the planet, for violating securities laws.

He declined to comment on the lawsuit, saying he could not comment on “individual cases the SEC is considering.” However, he added that he believes such measures by regulators are “appropriate.”

she added:

“I am supportive, and very supportive, of seeing these agencies using the tools they have.”

A bleak future or clarity in industry regulation?

The crypto industry and the U.S. regulatory system are currently in a dead end, and there is no other choice but to overcome regulations.

The SEC is taking action against Coinbase (the company that went through all the necessary regulatory frameworks to IPO in the U.S.), and the SEC claims that under current law most major cryptocurrencies are effectively securities. paints a bleak future for the country’s industry.

But these lawsuits will ultimately provide regulatory clarity to what the industry desperately needs to thrive in the United States.

U.S. regulators have so far refused to consider new rules for the cryptocurrency sector, with the SEC repeatedly arguing that current securities laws are sufficient to regulate the industry.

Despite these claims, there are publicly documented inconsistencies between regulatory stances on various cryptocurrencies. It took regulators years to grapple with the mysteries of Bitcoin and where it fits in the regulatory regime, with most regulators eventually acknowledging that Bitcoin is more of a commodity than a security. rice field.

However, the debate continues to rage when it comes to almost all other cryptocurrencies. The SEC has so far not listed Ethereum as a security in the lawsuit against Binance and Coinbase, but other top 10 projects such as Polygon and Cardano have been.

A post first appeared on CryptoSlate claiming that the crypto industry needs “additional regulation” to fill Janet Yellen’s “holes.”