Janet Yellen, U.S. Secretary of the Treasury, affirmed the necessity to regulate the cryptocurrency sector past securities legal guidelines on Feb. 6.
Yellen made these remarks throughout a listening to earlier than the U.S. Home of Representatives Committee on Monetary Companies. There, she stated:
“The [Treasury’s Financial Stability Oversight Council (FSOC)] is targeted on digital belongings and associated dangers … Relevant guidelines and rules must be enforced, and Congress ought to cross laws to offer for the regulation of stablecoins and of the spot marketplace for crypto-assets that aren’t securities.”
Yellen recognized associated dangers as runs on crypto-asset providers and stablecoins, vulnerabilities from crypto value fluctuations, and non-compliant crypto platforms.
Her statements look like a partial response to a Feb. 6 letter from 4 Republican lawmakers who search further info on the FSOC.
Yellen’s statements solely handle the difficulty broadly. The letter asks extra particular questions, together with whether or not the FSOC believes that Bitcoin (BTC) and Ethereum (ETH) are usually not securities, and whether or not it believes that the Commodity Futures Buying and selling Committee (CFTC) ought to have its authority expanded to identify markets for non-securities crypto belongings. The letter requests a response by Feb. 20.
Lawmakers help various laws
4 Republican lawmakers and Home members signed the letter to Yellen: Patrick McHenry, Glenn Thompson, French Hill, and Dusty Johnson.
These lawmakers acknowledged of their letter that the FSOC has recognized a scarcity of regulatory oversight in sure areas, together with round digital belongings that aren’t thought of securities. However though the FSOC has recognized these gaps, it has “did not facilitate an surroundings that ensures client safety and fosters digital asset innovation,” a press launch from lawmakers famous.
Republican lawmakers as a substitute advocated for laws known as the Monetary Innovation and Expertise Act for the twenty first Century (FIT21), which goals to ascertain clear roles for federal regulators in addition to buyer protections.
Although FIT21’s authors are Republican, the invoice handed out of committee with bipartisan help throughout a mid-2023 vote. The invoice is notably supported by Coinbase CEO Brian Armstrong and The Blockchain Affiliation.