Treasury Secretary indicates a regulatory framework to address potential threats in digital asset markets
Digital asset exchanges and other digital native mediators, should be accountable for reasonable aspects of supervision, said Janet Yellen. U.S Treasury Secretary Janet Yellen recorded stablecoins as one of the important policy problems in the digital asset space for controllers, nowadays liable to inconsistent and shattered oversight.
Talking to attendees at American University, Yellen said the Treasury Department was helping Congress to boost legislation to assure that stablecoins are resilient to threats to customers and the U.S. economic system. As per the Treasury Secretary, while stablecoins put forward policy concerns and problems around the coins’ reserve assets, many portions of the digital asset space present potential threats that could heighten imbalance.
Yellen said that regulatory frameworks should be constructed to benefit accountable creation while governing threats and especially those that could disrupt the economic system and the economy. Yellen presented a report from the President’s Working Group on Financial Markets published in November, which indicated that stablecoin issuers should be accountable to reasonable federal oversight akin to that of traditional banks.
She also put forward concerns about the Federal Reserve published a central bank digital currency in the U.S, saying the program would likely present a main method and engineering challenge that could take years of growth.
Dealing with the regulatory challenges presented by digital assets appears to be a key strategic problem for U.S. President Joe Biden. Yellen said the Treasury Department would be helping the White House and other government agents to generate foundational reports related to strategy suggestions for mitigating both systemic and customer threats around digital assets. The Department of the Treasury’s Office of Foreign Assets Control declared on Tuesday it was assessing sanctions on digital currency exchange Garantex and darknet marketplace Hydra.