The US Treasury Secretary Pushes for Cryptocurrency Legislation

Janet Yellen, the Treasury Secretary of the United States, has urged Congress to implement more robust regulations for digital assets in response to the current deficiencies in the regulatory framework. During an interview with CNBC, Yellen emphasized the potential risks involved in cryptocurrencies and voiced her backing for regulatory bodies such as the SEC and CFTC in effectively utilizing their existing resources. She stressed the necessity for enhanced oversight and expressed a readiness to work alongside Congress in passing new legislation to address these concerns.

Yellen’s call for improved cryptocurrency regulations comes after the SEC recently filed lawsuits against major platforms Binance and Coinbase. The lawsuits accuse Binance of engaging in unregistered activities, illegal securities offerings, and commingling client and corporate assets. Similarly, the SEC claims that Coinbase violated securities laws by consolidating the functions of a broker, exchange, and clearing agency, as well as through its staking program and other violations. Prior to these actions, the CFTC had already taken legal action against Binance and its CEO, Changpeng Zhao, and had identified operational violations at other major exchanges like Bittrex, Kraken, Gemini, and Genesis.

These developments in the cryptocurrency industry have prompted increased scrutiny from regulators. In April, the SEC Chairman, Gary Gensler, faced criticism during congressional hearings regarding the department’s stance on digital assets. Congressman Warren Davidson even announced a bill calling for Gensler’s resignation. The push for stronger cryptocurrency legislation reflects growing concerns about investor protection, market integrity, and the need to mitigate risks associated with the rapidly evolving digital asset landscape.