“Supporting actions to protect consumers”
US Treasury Secretary Janet Yellen appeared on CNBC’s Squawk Box on the 7th. She has reiterated her policy on cryptocurrencies following the US Securities and Exchange Commission (SEC) lawsuit against Binance.
Yellen said the U.S. Treasury Department produced a report on cryptocurrencies in response to the Biden administration’s executive order on cryptocurrencies, which identified many of the risks inherent in cryptocurrencies. On top of that, it explains:
connection: US President Biden signs executive order related to virtual currency
Our laws are already strong when it comes to the risks cryptocurrencies pose to consumers and investors.
The SEC, CFTC, and other regulators have the power and means to protect consumers and investors. I support these institutions using the tools they have.
Although he avoided mentioning the lawsuit, saying, “I can’t comment on individual matters that the SEC is doing,” he generally agreed with the regulatory authorities taking action to protect consumers. .
“We have identified areas where additional regulation is needed and we look forward to working with Congress on this,” Yellen added.
In February, Treasury Secretary Yellen said during a panel discussion on cryptocurrencies at the Group of 20 (G20) Finance Ministers’ meeting that the United States “is not proposing a blanket ban on cryptocurrency activities.” “It’s important to have a strong regulatory framework,” he said.
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What is SEC
Established in 1934. Its purpose is to ensure fair trading and investor protection, and prevent insider trading, corporate fraudulent accounting, and market manipulation. It also determines whether virtual currency falls under the category of securities. SEC stands for “Securities and Exchange Commission”, and in Japan the “Securities and Exchanges Surveillance Commission” plays a similar role.
US Congress Movement
There are currently several cryptocurrency-related bills in the U.S. Congress.
Republican Rep. Patrick McHenry and Rep. Glenn Thompson released a draft piece of legislation today that aims to clarify crypto regulation, providing a basis for debate.
In particular, the draft will also focus on the currently unclear delineation of what virtual currencies should be considered securities or commodities. It gives a clear definition of when a token is sufficiently decentralized that it ceases to be an investment contract.
connection: U.S. Congressmen announce bill to clarify cryptocurrency regulations
Also, on the 6th, the chairman of the CFTC, representatives of Coinbase and the major US investment app “Robinhood” attended a cryptocurrency-related hearing held at the US House of Representatives Agriculture Committee. He said Congress needed to act on regulation to protect consumers and encourage innovation.
connectionUS Robinhood considers review of listed tokens following lawsuit against Coinbase and Binance