US Treasury Secretary Janet Yellen Says Upcoming Crypto Regulations Will Fuel Healthy Innovation

yellen crypto

US Treasury Secretary Janet Yellen joined CNBC’s Squawk Box this morning and spoke to Andrew Sorkin about Bitcoin.

Secretary Yellen spoke about the overall US economy and mentioned she had high hopes as the job market strengthened and unemployment rates fell.

Later, Sorkin mentioned Russia’s recent announcement to accept Bitcoin payments for energy purchases and asked where the US stands on the crypto talk.

Senator Yellen began her response by recognizing Bitcoin’s exponential growth as an investment vehicle. She stated:

“Crypto has grown by leaps and bounds and now plays an important role in many Americans’ investment decisions.”

President Biden orders action

It seems that President Biden is also aware of the impact of Bitcoin and is getting ready to bring it under control. According to Yellen, the president issued an executive order a few weeks earlier, asking the treasury and other agencies to prepare for crypto regulation.

Minister Yellen had already mentioned this order a few weeks earlier. On March 9, she stated on Biden’s cryptocurrency executive order, saying:

“President Biden’s landmark executive order calls for a coordinated and comprehensive approach to digital asset policy. This approach supports responsible innovation that can deliver substantial benefits to the country, consumers and business.”

The statement goes on to list the risks:

“It will also address the risks associated with illicit financing, protect consumers and investors, and prevent threats to the financial system and the wider economy.”

Risks and Benefits

When Sorkin asked Secretary Yellen about her thoughts on crypto, she said there were legitimate concerns about crypto, but she also saw the benefits. Most of her concerns revolved around security issues. She said:

“I think there are valid concerns about it. Some have to do with financial stability, consumer and investor protection, use for illegal transactions and other things. On the other hand, there are also benefits of crypto.”

Upcoming US Regulations

After summarizing their main concerns regarding crypto, Secretary Yellen assured that they were also aware of the benefits. She said innovation can have a healing effect on financial systems, as long as it is “healthy.”

In doing so, she also alluded to the nature of upcoming US regulations as advisory rules that will ensure healthy crypto growth. She said:

“We recognize that innovation in payment systems can be healthy. Ultimately, we want to come up with recommendations that create a regulatory environment in which healthy innovation can grow.”

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