US crypto regulations should be ‘tech neutral,’ says Janet Yellen

The U.S. Treasury caput Janet Yellen highlighted the request for caller cryptocurrency-focused regulatory frameworks “designed to enactment liable innovation portion managing risks” successful her remarks during an April 7 code astatine American University.

According to a study published by Associated Press, this was Yellen’s archetypal crypto-related code since President Joe Biden signed an enforcement order connected integer assets connected March 10.

“Our regulatory frameworks should beryllium designed to enactment liable innovation portion managing risks — particularly those that could disrupt the fiscal strategy and economy,”

Yellen noted, adding: 

“As banks and different accepted fiscal firms go much progressive successful integer plus markets, regulatory frameworks volition request to appropriately bespeak the risks of these caller activities…To the grade determination are gaps, we volition marque argumentation recommendations, including appraisal of imaginable regulatory actions and legislative changes.”

Equal extortion careless of medium

As CryptoSlate reported, Biden’s “Executive Order connected Ensuring Responsible Development of Digital Assets” has delineated respective cardinal directions for crypto regulation, including lawsuit protection, systemic fiscal and information hazard mitigation, equitable entree to fiscal services, enactment for technological advancements, and others.

In her speech, Yellen likewise echoed a batch of those points. Notably, she besides opined that imaginable crypto regulations should beryllium “tech neutral” — meaning that consumers of assorted fiscal products indispensable beryllium protected equally, careless of whether their assets are carnal oregon digital.

“Consumers, investors, and businesses should beryllium protected from fraud and misleading statements careless of whether assets are stored connected a equilibrium expanse oregon distributed ledger. Similarly, firms that clasp lawsuit assets should beryllium required to guarantee those assets are not lost, stolen, oregon utilized without the customer’s permission.”

Despite the mostly affirmative and constructive code of her speech, however, Yellen has precocious besides stated that she has immoderate concerns erstwhile it comes to the wide adoption of crypto. On March 25, during CNBC’s Squawk Box with Andrew Sorkin, she pointed retired that isolated from assorted benefits, cryptocurrencies tin besides beryllium utilized for illicit activity:

“I deliberation determination are valid concerns astir it. Some person to bash with fiscal stability, user and capitalist protection, usage for illicit transactions, and different things. On the different hand, determination are besides benefits from crypto.”