U.S. Treasury Secretary Janet Yellen said on the sidelines of the G20 meeting for finance ministers and central bank governors that “it is important to put in place a strong regulatory framework” for cryptography. Yellen added, “We are not suggesting an outright ban on crypto activity.”
Janet Yellen on “strong” crypto regulation
U.S. Treasury Secretary Janet Yellen spoke about crypto regulations in an interview with Reuters on Saturday on the sidelines of the G20 Finance Ministers and Central Bank Governors Meeting, which India chairs in Bengaluru.
Yellen stressed the importance of establishing a strong regulatory framework for cryptocurrencies, while clarifying that the US is not proposing an outright ban. The Treasury Secretary said.
While we are not proposing an outright ban on crypto activities, it is important to put in place a strong regulatory framework… We are working with other governments.
Crypto regulation was one of the key topics discussed this weekend by the finance ministers and central bank governors of the G20, of which India is the chair. During the meeting, India asked the International Monetary Fund (IMF) and the Financial Stability Board (FSB) to develop a joint paper on crypto to develop a “coordinated and comprehensive policy approach to crypto assets.”
Indian Finance Minister Nirmala Sitharaman has been pushing for international cooperation on crypto regulation for several months. She said before the G20 meeting that India is having “detailed discussions” with G20 members on cryptography regulation and will establish a technology-driven regulatory framework or standard operating procedure (SOP) on cryptography.
In the U.S., the Securities and Exchange Commission (SEC) recently stepped up enforcement actions against crypto companies; the SEC recently charged crypto exchange Kraken in connection with its staking program and Nexo in connection with its issuance of Binance USD (BUSD) stablecoin. The securities watchdog also charged Terraform Labs and CEO Do Kwon for defrauding investors.
IMF Managing Director Kristalina Georgieva also said on the sidelines of the G20 meeting this weekend that crypto needs “more regulation.” Noting that a “very strong push for regulation” is needed, she said.” If regulation fails, if it is too late to do it, then those assets should not be taken off the table to be banned, because they could create a financial stabilization risk.”
In addition, the IMF’s Executive Board this week provided guidance to help countries develop effective crypto policies. A few Executive Board members felt that “a complete ban should not be ruled out.” In addition, the board advised, ” Crypto assets should not be granted official or legal tender status.”
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