Shortly after the Securities and Exchange Commission (SEC) filed lawsuits against Binance and Coinbase, raising concerns about the future of cryptocurrency in the United States, Treasury Secretary Janet Yellen expressed her support for the agency’s utilization of its enforcement powers.
During an interview on CNBC, Yellen acknowledged that, according to U.S. law, both the SEC and the Commodity Futures Trading Commission possess various measures to safeguard consumers and investors.
Janet Yellen shows support for SEC’s actions
While speaking to CNBC, Yellen refrained from providing specific comments regarding the Binance and Coinbase lawsuits. However, she did express her belief that the SEC’s actions were appropriate.
Yellen further highlighted that following President Joe Biden’s executive order on digital assets last year, the Treasury Department issued reports outlining various risks associated with cryptocurrency. Some of these risks have the potential to jeopardize consumers and investors.
In October, the Financial Stability Oversight Council, chaired by Yellen, emphasized in a comprehensive report summary that the growth of crypto-asset activities without proper regulation, including enforcement measures, could pose risks to the stability of the U.S. financial system.
While supporting the efforts of regulators, Yellen acknowledged the existence of regulatory gaps in the oversight of cryptocurrencies. She emphasized the need for lawmakers to address these gaps to ensure effective regulation of the crypto industry.
She also told CNBC that “I see some holes in the system where additional regulation, I think, would be appropriate, and we would like to work with Congress to see additional legislation passed.”
