Key Takeaways
- U.S. Treasury Secretary Janet Yellen states, “critical to put in place a strong regulatory framework for crypto activities.
- IMF Managing Director Kristalina Georgieva stated that crypto banning should be an option,
Monetary and regulatory bodies around the world are now taking a proactive approach toward crypto enforcement. The latest body to voice the necessity for crypto regulations in the U.S. treasury.
On February 25, during the G20 meet, United States Treasury Secretary Janet Yellen said that it was “critical to put in place a strong regulatory framework for crypto activities. She further stressed that the United States is not suggesting an “outright banning of crypto activities by engaging in crypto regulation. This is not the first time the treasury secretary has spoken in favor of stricter crypto regulation.
In November 2022, the treasury secretary noted that in the U.S., cryptocurrency regulation had been a “tremendous focus” of the Biden administration. She then emphasized that “a good deal of progress” has been made in “at least dealing with issues of illicit financing through cryptocurrencies. In 2022, Janet Yellen also spoke on the necessity for international collaboration on dealing with cryptocurrencies.
She is, however, not the first regulatory body head to stand in favor of crypto regulation. During the G20 meet, International Monetary Fund (IMF) Managing Director Kristalina Georgieva also spoke about the need for a strong push for crypto regulation.
“There has to be a very strong push for regulation.. if regulation fails, if you’re slow to do it, then we should not take off the table banning those assets because they may create financial stability risk.”
Stating that crypto banning should be an option, Georgieva explained that the IMF, the Bank for International Settlements(BIS), and the Financial Stability Board are committed to establishing a foundation for regulating cryptocurrencies that governments or central banks do not issue.
Georgieva’s statement comes amidst the IMF releasing an action plan on crypto assets, urging countries to abolish legal tender status for crypto. Apart from IMF and the U.S. treasury, the United Securities and Exchange Commission (SEC), which dominant position in the U.S. in regulating the digital assets space, is also pro-crypto regulation.
SEC’s Chair Gary Gensler has long argued that most crypto should be classed as securities and thus be regulated under existing securities laws. Earlier this week, India’s Union Finance Minister Nirmala Sitharaman had also called for the need for a global framework to help regulate crypto assets.
