Janet Yellen says crypto has its benefits and the Treasury hopes to offer guidance on regulations that foster ‘healthy innovation’

Janet Yellen says crypto has its benefits

US Secretary of the Treasury Janet Yellen nodded to the benefits offered by cryptocurrencies, stating that the Treasury wants to provide guidance for future regulation that supports innovation in the space.

“Crypto has obviously grown by leaps and bounds, and is now playing a significant role not really so much in transactions but in investment decisions of lots of Americans,” Yellen said in an interview on CNBC Friday.

The benefits of crypto are apparent, she said, and the Treasury acknowledges the growing role it plays in the current landscape. “We recognize the innovation in the payment system can be a healthy thing,” Yellen said.

She added that she still has some concerns over cryptocurrencies related to financial stability, consumer and investor protection, and their use in illicit transactions.

Moving forward, Yellen explained that she aims for the Treasury to issue recommendations on the use of crypto which could help develop a regulatory environment that fosters innovation.

In early March, President Biden issued an executive order on cryptocurrencies that zeroed in on consumer protection and the mitigation of crimes related to digital assets.

The Treasury, Yellen explained, is working to bolster itself against the threat of related cyberattacks. “Cyber is a real risk and we recognize we have vulnerabilities, and we’re doing everything we can to be prepared to deal with that, and up our defense,” Yellen said.