In a recent interview with CNBC’s “Squawk Box” co-anchor Andrew Ross Sorkin, U.S. Treasury Secretary Dr. Janet Yellen expressed her evolving views on the cryptocurrency sector and the need for enhanced regulation to protect consumers and investors.
During the conversation, Sorkin brought up the topic of cryptocurrencies, a recurring theme in their past interviews, and mentioned the ongoing lawsuits against Coinbase and Binance by the Securities and Exchange Commission (SEC). He asked Yellen about her current stance on cryptocurrencies, particularly in light of these legal actions and the growing interest of the American public in crypto investments.
Yellen responded by referring to a series of reports recently produced by the Treasury in response to a presidential executive order. These reports examined the inherent risks associated with cryptocurrencies. She acknowledged the existence of several risks, including those posed to consumers and investors.
Yellen expressed her confidence in the current legal framework, stating that regulatory bodies such as the SEC and the Commodity Futures Trading Commission (CFTC) already possess the necessary tools to protect consumers and investors. She voiced her support for these agencies to fully utilize their regulatory powers.
While she refrained from commenting on the specific cases the SEC is currently handling, Yellen affirmed the appropriateness of the SEC’s actions. She also identified certain gaps in the current regulatory system that could be addressed with additional regulation.
The former Fed Chair concluded her remarks by expressing her desire to collaborate with Congress to pass additional legislation that would strengthen the regulatory framework for cryptocurrencies.