Treasury Secretary Janet Yellen reiterated her call for enhanced sanctions on digital assets.
Yellen argued that the US government should use its enforcement authority to curb crypto scams and operational failures.
Sanctions from Treasury Secretary Yellen
The Biden administration has released several digital asset reports for cryptocurrency issues. Yellen spoke about the reports at the Securities Industry and Financial Markets Association’s annual meeting in New York.
“Our report found that there are too many cases of fraud and operational failure. We have enforcement authorities in place and we would like to see more enforcement in this area.”
Noting that cryptocurrencies do not pose a significant risk to financial stability, Yellen said that although it is not big enough in its sector yet, this situation may change as the technology matures.
“It can pose risks. For this reason, we want to see an improvement in regulations in this area.”
Yellen pointed out that regulation should be made regarding the vertical integration of spot markets, stablecoins and crypto companies for non-securities crypto assets.
Yellen said about the stablecoin:
“This is an example of some kind of regulatory arbitrage. We think this is a banking type product that needs a really tight regulatory framework to operate safely.”
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