U.S. Treasury Secretary Yellen: Establishing a strong regulatory framework is crucial

U.S. Treasury Secretary Janet Yellen said during the G20 meeting of finance ministers and central bank governors that “it is critical to establish a strong regulatory framework for cryptocurrencies”, “but we have not recommended an outright ban on cryptocurrencies.” Activity”.

Yellen spoke about the regulation of cryptocurrencies in an interview with Reuters on the sidelines of a meeting of G20 finance ministers and central bank governors in India on Saturday. Yellen emphasized the importance of a robust regulatory framework for cryptocurrencies, while clarifying that the U.S. is not proposing an outright ban.

“We are not recommending an outright ban on cryptocurrency-related activities, but it is critical to have a robust regulatory framework in place … we are working with other governments,” the finance minister said.

Cryptocurrency regulation is one of the key topics discussed at the G20. During the meeting, India asked the International Monetary Fund (IMF) and the Financial Stability Board (FSB) to develop a joint paper on cryptocurrencies to help develop a “coordinated and comprehensive policy approach for crypto-assets.”

For months, India’s finance minister, Nirmala Sitharaman, has been pushing for international cooperation on cryptocurrency regulation. She said ahead of the G20 meeting that India is in detailed discussions with G20 members on crypto regulation to create a technology-driven regulatory framework or set of standard operating procedures (SOPs).

In the U.S., the Securities and Exchange Commission (SEC) has recently stepped up enforcement against crypto companies. The SEC recently charged cryptocurrency exchange Kraken with its staking scheme, Paxos with its BUSD stablecoin offering, and fraud charges against Terraform Labs and its CEO, Do Kwon.

IMF Managing Director Kristalina Georgieva also said during the G20 meeting that cryptocurrencies need “more regulation.” She pointed out that the government must “promote regulation very strongly,” and more bluntly, “If regulation fails, or moves too slowly, then we have to bring the ‘ban on encrypted assets’ back to the negotiating table, because they may be harmful to financial stability. risk.”

The IMF Executive Board recently provided guidance to help countries develop effective cryptocurrency policies. Some members of the executive board argued that the option “should not be ruled out” and suggested that crypto assets should not be granted official currency or legal tender status.