Treasury Sec Janet Yellen Wants Congress to Pass Additional Crypto Laws

Amid the ongoing clamor for regulatory clarity in the United States, Treasury Secretary Janet Yellen has lent her voice. The top government official in an interview with CNBC said the agency has identified a number of risks associated with the digital currency ecosystem.

She said that based on these risks, the Treasury Department is in support of regulatory agencies in using the tools at their disposal to bring enforcement into the industry.

"We've identified a number of risks [with crypto]. I'm supportive of those agencies to use the tools they have," says @SecYellen. "I see some holes in the system where additional regulation would be appropriate. We'd like to work with Congress to see additional regulation pass." pic.twitter.com/leZjF5QRU0

— Squawk Box (@SquawkCNBC) June 7, 2023

According to her, she sees some holes in the system where additional regulation would be appropriate. Lending her voice to the conversation regarding the need for clearer regulations in the US, Yellen said she and her team would “like to work with Congress to see additional regulations pass.”

This week marks one of the most polarizing periods in the history of the US crypto markets with the Securities and Exchange Commission (SEC) bringing up charges against the two biggest trading platforms in the industry – Binance and Coinbase.

The crackdown from the markets regulator has been faulted on all fronts with both exchanges claiming they have been making frantic efforts to reach out to the regulator for clarity and defined rules of engagement. With Coinbase even going as far as filing a petition against the regulator for failing to provide the long sought clarity, pundits are now beginning to side with the exchanges in the event that a legal battle ensues.

Will Treasury Sec Support Positive Crypto Regulations?

Despite the Treasury Sec acknowledging that her department will work with Congress to bring additional regulation to the industry, the trust that her stance will be favorable is up for debate.

Her position currently contradicts that of the SEC Chairman Gary Gensler who believes the existing regulations in the broader financial ecosystem is enough to guide the digital currency ecosystem. However, as guardians of the US monetary system, both might eventually be working for the probable emergence of the United States Dollar as Gensler recently said the US does not need more digital currencies.

While this assumptions might be speculative, the industry will heave a resounding sigh of relief if a defined regulation is finally introduced.