Friday, October 7, 2022

US Treasury Secretary Janet Yellen Shares Stance on EO on Crypto

The US Secretary of the Treasury, Janet A. Yellen has issued a statement on the executive order of the President, Joe Biden on the proposed regulation of crypto by the Federal Reserve. A press release, which was retracted but later retrieved in an archive, was published on the site of the Treasury, stating the strategies for implementing the declaration of Biden.

According to a University of Chicago’s research published in November last year, the value of crypto skyrocketed in 2021, with the global crypto market cap reaching an all-time high of $3 trillion at the time when Bitcoin (BTC) printed an ATH above $68,000. An approximation of 14% of Americans were investors in the digital assets sphere in the past year per the research. 

This amongst many other reasons accounts for why the United States government chose to issue out an order, on the regulation of crypto-assets and possible consideration of a Central Bank Digital Currency (CBDC).

According to the statement by Yellen, the president’s order requires “a coordinated and comprehensive” perspective to the regulation of virtual assets, mentioning further that, if the policy processes pull through, it;

“Could result in substantial benefits for the nation, consumers, and businesses. It will also address risks related to illicit finance, protecting consumers and investors, and preventing threats to the financial system and broader economy.”

To successfully implement the president’s order, the Treasury will team up with other staff across other agencies of the U.S. government to generate a report on what the future holds for the financial system of the nation. Considering the peculiarities of managing virtual assets across borders, the Department will also be partnering with international bodies “to promote robust standards and a level playing field.”

Further in the press release, the Federal Reserve had teamed up with the Biden’s executive team on finance, as well as the OCC and the Federal Deposit Insurance Corporation (FDIC) in studying a type of crypto asset, the stablecoin, and suggested recommendations. 

In concluding the statement, the Treasury Department said it will be “guided by consumer and investor protection groups, market participants, and other leading experts,” so as to ensure “financial stability and national security.”

The U.S. onboards the train of scripting and implementing policies that regulate the use of digital assets by digital assets and its CBDC, a move other nations like the Philippines and Brazil are also moving forward in.

Israel Love
Israel Love is a passionate writer that enjoys educating and inspiring people through his writing. This passion fuels the desire to simplify the complexities in the blockchain ecosystem, by providing viable information about the crypto space in such a way that makes it easy for anyone to understand. Israel love also has interests in Human Resource Management as he is a trained expert in HR.

Related Articles

Stay Connected

0FansLike
0FollowersFollow
2,038FollowersFollow

Latest Articles

%d bloggers like this: