THELOGICALINDIAN - Treasury Secretary Yellen says the authoritative frameworks for crypto assets in the US should abutment amenable addition while managing risks She emphasized Regulation should be based on risks and activities not specific technologies
Treasury Secretary Yellen on Crypto Regulation
U.S. Treasury Secretary Janet Yellen talked about crypto adjustment Thursday at American University’s Kogod School of Business Center for Innovation.
“Digital assets may be almost new, but they are allotment of a beyond trend – the digitization of accounts – that has been in the authoritative for decades,” she began.
Yellen mentioned a advanced ambit of capacity apropos to bitcoin and added cryptocurrencies, including how Bitcoin got started, Satoshi Nakamoto, the Bitcoin white paper, decentralized peer-to-peer systems, the double-spend problem, bitcoin’s volatility, and crypto adoption. Moreover, she referenced President Joe Biden’s contempo executive order on the adjustment of crypto assets.
The treasury secretary proceeded to allotment some acquaint that “apply as we cross the opportunities and challenges airish by these arising technologies,” she described, abacus that one of the acquaint is “When adjustment fails to accumulate clip with innovation, accessible bodies generally ache the greatest harm.”
She additionally discussed stablecoins. “Of course, stablecoins are aloof one allotment of a abundant beyond ecosystem of agenda assets,” Yellen said, elaborating:
“As banks and added acceptable banking firms become added complex in agenda asset markets, authoritative frameworks will charge to appropriately reflect the risks of these new activities,” she detailed. “And, new types of intermediaries, such as agenda asset exchanges and added agenda built-in intermediaries, should be accountable to adapted forms of oversight.”
Furthermore, Yellen opined:
“When new technologies accredit new activities, products, and services, banking regulations charge to adjust,” she stressed. “But, that action should be guided by the risks associated with the casework provided to households and businesses, not the basal technology. Wherever possible, adjustment should be ‘tech neutral.'”
In March, Yellen accepted that crypto has benefits, acquainted that the Treasury is alive on crypto regulation. “Crypto has acutely developed by leaps and bound and it’s now arena a cogent role, not absolutely so abundant in transactions, but in advance decisions of lots of Americans,” she said.
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