Speaking on CNBC’s Closing Bell Show Treasury Secretary Janet Yellen voiced her opinion regarding Bitcoin. While not completely endorsing the digital asset, she said that Bitcoin regulations should be focused on investor protections.
She said “investors should be very careful with some sectors” and called bitcoin “highly speculative.” She pointed to Bitcoin’s volatility, and said that it had been this way in recent years.
Yellen stated that “regulating institutions that deal in Bitcoin, making sure that they adhere to their regulatory responsibilities, I think is certainly important.”
However, she previously stated that cryptocurrencies also have the potential to “improve the efficiency of the financial system,” according to a written response to the Senate Finance Committee.
America is still waiting on regulatory clarification , and how the US Treasury Department will proceed with digital assets regulations is currently unknown. However, Yellen has called for better cooperation with other government agencies regarding crypto regulation. A 114-page paper draft on the directions of the department under her helm was circulated during her Senate hearings.
However, the draft gives little detail on this cooperation.
Treasury Sec. Yellen is pushing for a large relief package to aid the U.S. economy. "I think the price of doing too little is much higher than the price of doing something big," she says. 4 experts weigh in on her comments. https://t.co/vcCVOykphz pic.twitter.com/oX0DNYhVhk
— CNBC (@CNBC) February 19, 2021
Yellen has extensive education and experience in the politics of global finance. She has previously served as Chair of the Federal Reserve, the U.S. Central Bank and has been a long-time economist.
In the CNBC interview, Secretary Yellen also elaborated on the latest round of COVID-related economic stimulus.
Her plate is full just trying to contain the economic fallout of the pandemic, and rebuilding the US economy.
Nevertheless, cryptocurrency issues are certain to rise under her tenure.
