Due to several legal cases levied against major cryptocurrency platforms Coinbase and Binance, Janet Yellen,Treasury Secretary advocated for enhanced regulation to safeguard cryptocurrency users and investors.
In a recent press interview Secretary Yellen drums support for U.S. financial regulatory agencies, including the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC), in their unflinching efforts to ensure the safeth of crypto users and investors. These comments followed the recent legal proceedings brought against crypto industry giants, Coinbase and Binance. However, Yellen refrained from commenting directly on these specific lawsuits.
However Yellen’s statements ehoe a report from the Financial Stability Oversight Council (FSOC), of which she is also the chair. In the previous year, FSOC said that under certain circumstances, cryptocurrencies could pose a threat to U.S. financial stability.
Yellen admitted to gaps in ongoing crypto regulations and stressed on the need for their adjustment. Although she persuaded the Congress to enact more stringent regulations for crypto enterprises. Yellen proposes a partnership approach between the Treasury Department and Congress could yield more effective and efficient crypto legislation.
Despite the need for urgency, there is yet to be any legislation by the Congress as regards cryptocurrencies. The absence of any enacted bill so far can be attributed to a noticeable partisan divide on crypto-related affairs.