Christian Langalis, famously known as “Bitcoin Sign Guy,” has auctioned the “Buy Bitcoin” sign he displayed during Janet Yellen’s 2017 Congressional testimony for 16 BTC, approximately million dollars at current prices. The sign was listed on the Scarce City marketplace, and was drawn on a yellow legal pad with a Uniball Vision pen. Langalis […]
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US Lawmakers Press Treasury Secretary Janet Yellen on Crypto Oversight Gaps
Four U.S. lawmakers have pressed Treasury Secretary Janet Yellen regarding crypto oversight gaps. The Financial Stability Oversight Council (FSOC), which Yellen chairs, has issued “repeated warnings about the lack of oversight of the digital asset markets,” the lawmakers detailed, questioning Yellen how the council believes existing laws should apply bitcoin, ether, and non-security crypto assets.
Lawmakers Want Answers From Yellen
Representatives Patrick McHenry, Glenn Thompson, French Hill, and Dusty Johnson sent a letter to Treasury Secretary Janet Yellen concerning crypto regulation on Tuesday following her testimony before the House Committee on Financial Services. In her testimony, Yellen called on Congress to “pass legislation to provide for the regulation of stablecoins and of the spot market for crypto-assets that are not securities.”
McHenry chairs the House Committee on Financial Services; Thompson chairs the House Committee on Agriculture; Hill chairs the Subcommittee on Digital Assets, Financial Technology, and Inclusion; and Johnson chairs the Subcommittee on Commodity Markets, Digital Assets, and Rural Development.
The letter explains that following the collapse of crypto exchange FTX, the House Committees on Agriculture and Financial Services “embarked on a historic effort to craft legislation providing increased regulatory oversight over the digital asset markets.” Specifically, the Financial Innovation and Technology Act for the 21st Century (FIT21) “would provide federal regulators with clear authority over the digital asset spot markets and ensure the customer protections seen in the current financial regulatory structure apply to intermediaries and digital asset-related activities.”
The lawmakers pointed out that the Financial Stability Oversight Council (FSOC), which Yellen chairs, has issued “repeated warnings about the lack of oversight of the digital asset markets” and has identified the same gaps they sought to address in their legislation. The gaps include “limited direct oversight of the spot market for digital assets that are not securities, opportunities for regulatory arbitrage, and whether vertically integrated market structures can and should be accommodated under existing laws and regulations.”
Commenting on the authority of the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) in regulating crypto, the Congress members shared with Yellen:
To highlight the gaps, bitcoin and ether have not been recognized as securities … Because these underlying assets are not securities, neither the CFTC nor SEC has the authority to register and regulate trading platforms or other intermediaries engaged in spot transactions in both of these digital assets.
The lawmakers proceeded to ask the Treasury Secretary some questions “To further understand how FSOC is facilitating coordination and communication between the SEC and CFTC as it relates to federal oversight of the spot market for digital assets that are not securities,” the letter reads. They asked Yellen to respond no later than Feb. 20.
Firstly, the Congress members requested details of the Digital Assets Working Group’s meetings, from its 2017 inception to 2023. Secondly, the lawmakers seek clarification from Yellen regarding the FSOC’s position that securities laws apply to all crypto-asset issuers and secondary transactions involving these assets.
Moreover, referencing SEC Chair Gary Gensler’s claiming that most crypto tokens qualify as securities, they highlighted that “the final investment contract analysis is backwards looking, made by a court after the transaction in question has been completed.” They asked Yellen: “How does this reactive legal authority provide adequate protection for customers, in the absence of comprehensive legislation?”
The lawmakers also asked the Treasury Secretary: “Is it the view of FSOC that both bitcoin and ether are not securities?” In addition, they questioned: “Given the existing authorities of the CFTC over segments of the non-security digital asset market, is it the Council’s view that expanding the CFTC’s jurisdiction to encompass the spot market in non-security digital assets is appropriate?”
What do you think about the lawmakers’ letter to Janet Yellen regarding crypto oversight? Let us know in the comments section below.
US Treasury Secretary Janet Yellen Urges Congress To Pass Crypto Legislation
In a recent statement before the House of Representatives, US Treasury Department Secretary Janet Yellen emphasized the need for Congress to pass legislation that provides clarity and regulation in the crypto markets.
Secretary Yellen Calls For Action ‘Digital Asset Risks’
During the Financial Committee hearing, Yellen highlighted the “risks” associated with digital assets and called for measures to address potential vulnerabilities and non-compliance with applicable laws and regulations.
Yellen specifically mentioned concerns related to runs on crypto-asset platforms, stablecoins, and the “proliferation” of platforms acting outside regulatory boundaries.
The Treasury Secretary stressed the importance of enforcing existing rules and regulations while urging Congress to enact legislation specifically targeting stablecoins and “non-securities” crypto assets in the spot market.
Notably, Taylor Barr, head of policy at the blockchain trade association Chamber of Digital Commerce, pointed out that the bipartisan FIT for the 21st Century Act, led by Representative French Hill, aligns with Yellen’s call for market structure and regulation.
Hill, a proponent of the legislative environment for crypto, previously highlighted the progress made in the House of Representatives. He emphasized passing the first comprehensive regulatory framework for digital assets and the prudent approach to stablecoins.
Furthermore, Hill believes that these initiatives address significant “regulatory gaps” and contribute to the crypto industry’s growth.
Pro-Crypto Stance And Legislative Initiatives Align
Barr also commended the Clarity for Payment Stablecoins Act proposed by the Chairman of the US Financial Committee, Patrick McHenry.
This act aims to establish consistent oversight and consumer protection for payment stablecoins, incorporating successful state-level regulations and striking a balance between innovation and regulatory certainty.
McHenry, who has been vocal about the importance of the US leading the financial system of the future, has already emphasized the bipartisan progress on legislation to address the regulatory challenges posed by digital assets.
McHenry called for the “completion of the job,” highlighting the Clarity for Payment Stablecoin Act as a crucial step towards establishing a federal framework for stablecoins.
Overall, the convergence of Secretary Yellen’s call for regulation, Representative Hill’s legislative initiatives, and Chairman McHenry’s pro-crypto stance reflect a growing momentum toward establishing a comprehensive regulatory framework for the crypto industry.
However, it remains to be seen how Secretary Yellen’s proposed regulatory enforcement ideas and proposals will strike a balance between fostering innovation, as emphasized by McHenry and Hill while ensuring the growth of nascent technology.
As discussions on crypto legislation continue, the industry eagerly anticipates the outcome, seeking a regulatory environment that provides clarity and consumer protection and positions the United States at the forefront of digital asset innovation.
Featured image from Shutterstock, chart from TradingView.com
Janet Yellen Calls for Crypto Regulation in Congressional Testimony, Citing Financial System Risks
Treasury Secretary Janet Yellen, in her forthcoming appearance before the House Financial Services Committee, is set to emphasize the potential dangers the cryptocurrency industry presents to financial stability, advocating for legislative action to regulate digital assets effectively.
Treasury Secretary Janet Yellen Urges Congress to Act on Crypto Regulation Amid Financial System Concerns
U.S. Treasury Secretary Janet Yellen is set to speak on the potential risks posed by the crypto industry to the financial system, including the instability of stablecoins, the danger of runs on crypto platforms, and the volatility of crypto-asset prices in her testimony before the House Financial Services Committee on Tuesday. Yellen’s prepared remarks, which were shared ahead of the session, spotlight the government’s increasing focus on digital assets as a significant area of concern.
Leading the Financial Stability Oversight Council (FSOC), a coalition of federal financial regulators tasked with ensuring the stability of the country’s financial system, Yellen will present the council’s latest annual report and express the need for legislative action to regulate the crypto sector.
Yellen remarks in her prepared statement:
The council is focused on digital assets and related risks such as from runs on crypto-asset platforms and stablecoins, potential vulnerabilities from crypto-asset price volatility, and the proliferation of platforms acting outside of or out of compliance with applicable laws and regulations.
This appearance comes at a time when the crypto industry continues to recover from high-profile setbacks, including the collapse of the FTX exchange, which Yellen had previously likened to the “Lehman moment” for crypto, referencing the 2008 financial crisis-triggering fall of Lehman Brothers.
Yellen’s statement emphasizes the need for Congress to pass legislation to address these concerns, particularly the regulation of stablecoins and the spot market for crypto-assets that are not classified as securities. She states, “Applicable rules and regulations should be enforced, and Congress should pass legislation to provide for the regulation of stablecoins and of the spot market for crypto-assets that are not securities.”
The FSOC’s 2023 annual report, released in December, had already pointed out the price volatility and interconnectedness within the crypto industry as key concerns. With Yellen’s testimony, the council’s stance on the urgent need for regulatory measures becomes clearer, signaling a concerted effort to mitigate the systemic risks associated with digital assets.
Lawmakers are working on several pieces of legislation, focusing not only on stablecoins but also on broader market structure issues and anti-money laundering measures.
Do you think Yellen is in favor of crypto regulation that will give regulatory clarity, but not stifle growth and innovation? Share your thoughts and opinions about this subject in the comments section below.
US Treasury Secretary Janet Yellen Declares ‘Soft Landing’ Reached, Americans Recovering Optimism
Janet Yellen, U.S. Treasury Secretary and former Chairman of the U.S. Federal Reserve, believes that the recent improvements in the American economy show that the country has achieved a soft landing. For Yellen, the recent low figures of inflation and the strength of the labor market are signs of this scenario.
Janet Yellen Declares U.S. Economy Reached ‘Soft Landing’ Scenario
U.S. Treasury Secretary Janet Yellen believes that the U.S. economy has improved during the last six months, declaring that she feels that what they are seeing now can be described as a soft landing, which happens when the measures taken by the Federal Reserve, as interest rate hikes, slow down inflation without causing a recession.
According to Yellen, this is what the Federal Reserve has achieved, taking the latest labor markets and inflation numbers into account. Supporting her statements, Yellen explained that the labor market hadn’t slowed down, with 23 months in a row with the unemployment percentage under 4%, something not seen in 50 years, and 216,000 jobs added in December.
In an X post, Yellen stated:
The American people, workers, and businesses have helped put us on a path to a soft landing. The President’s economic agenda is giving them the tools they need to grow the economy, including historic investments in infrastructure, clean technology, and semiconductors.
Yellen also remarked on the advances that the economic apparatus of the U.S. had reached, achieving a steep inflationary decline during the last six months. However, he acknowledged that there is more to do on the inflationary front concerning housing and food prices, that have remained high. Also, she stated that polls have started to show that Americans are becoming more optimistic about their future.
Yellen’s recent remarks are consistent with her statements from December when she stressed that, even when there was always a recession risk, she didn’t believe it was particularly high at that moment, explaining that people would start feeling better about the economy gradually over time.
What do you think about Janet Yellen’s statements on reaching a soft landing scenario? Tell us in the comments section below.
Treasury Secretary Janet Yellen Discusses US Economy, Recession Risk, Soft Landing
U.S. Treasury Secretary Janet Yellen believes that inflation has come down meaningfully but there’s still further to go for the Federal Reserve to achieve its 2% inflation target. She noted that the central bank has two risks to manage. “One is that inflation doesn’t come down back to their target as they envisioned, and the other is that the economy becomes too weak,” she detailed.
Yellen Discusses U.S. Economy
U.S. Treasury Secretary Janet Yellen discussed the state of the U.S. economy in an interview with CNBC on Wednesday as the Federal Reserve left interest rates unchanged for the third consecutive time.
While stating that “Inflation has come down meaningfully,” Yellen cautioned: “There’s further to go for the Fed to achieve its 2 percent objective, but I think we’re on a path, and you can see a consistent pattern in inflation coming down over time.” The U.S. November Consumer Price Index rose 3.1% on an annual basis.
Regarding whether the U.S. economy will slide into a recession, Yellen said:
Well, I believe in any year, even if you knew nothing about the economy, there’s a recession risk that’s over 10%. So, there is always some recession risk. I don’t think it’s particularly high. Consumer spending, we have seen remain solid.
“Gradually over time, I think people will feel better about the economy,” Yellen emphasized while admitting that people have noticed that “the level of prices in some cases is higher than it was before the pandemic.” She mentioned: “They notice their bills, certain bills are higher. Rent would be a very good example. Apartment rentals, for example.”
Yellen also reiterated her view that the U.S. economy is heading for a soft landing, adding that she saw a reasonable chance that growth would continue in 2024. “I think there’s a reasonable chance we get it. I think that we’re on that path. My baseline is that we’ll achieve a soft landing,” the Treasury Secretary described.
Commenting on whether the Federal Reserve will cut interest rates next year, Yellen opined: “As inflation moves down, it’s in a way natural that interest rates should come down somewhat because real interest rates would otherwise increase, which can tend to tighten financial conditions.” She continued:
They have two risks to manage. One is that inflation doesn’t come down back to their target as they envisioned, and the other is that the economy becomes too weak … I’m going to leave that call to them.
What do you think about the statements by Treasury Secretary Janet Yellen? Let us know in the comments section below.
Janet Yellen Urges Congress to Enact Stricter Regulations for Crypto Industry Amid SEC Shakedown
In a recent statement, former U.S. Federal Reserve chair and current Treasury secretary, Janet Yellen, expressed her desire for Congress to enact more regulatory measures concerning the cryptocurrency industry. Yellen cited Treasury reports on cryptocurrencies that have pinpointed various risks linked to the fast-growing sector.
Yellen Sees ‘Holes in the System Where Additional Regulation Would Be Appropriate’
During a “Squawk Box” interview on CNBC with Andrew Ross Sorkin on Wednesday morning, the conversation ranged from the debt ceiling to the state of the U.S. economy but also delved into digital currencies in light of recent lawsuits filed by the U.S. Securities and Exchange Commission against Binance and Coinbase. Yellen alluded to Treasury reports examining crypto, a requirement issued by President Joe Biden’s executive order on the topic.
Yellen fervently believes that increased regulation is necessary within the crypto domain and advocates for Congress to take action and establish appropriate policies. “We’ve identified a number of risks [with crypto]. I’m supportive of those agencies to use the tools they have,” Yellen told Sorkin. Yellen added:
I see some holes in the system where additional regulation would be appropriate. We’d like to work with Congress to see additional regulation pass.
On numerous occasions, Yellen has endorsed stringent regulations for cryptocurrencies. During February’s G20 meeting, she informed reporters that establishing a robust regulatory framework was crucial. In November 2022, Yellen referred to the FTX collapse as a “Lehman moment” and emphasized that the crypto industry necessitates “adequate regulation.” Yellen’s latest comments with Sorkin surfaced after SEC Chair Gary Gensler appeared on CNBC just one day prior, declaring that “we don’t need more digital currency.”
What are your thoughts on Janet Yellen’s call for increased regulation in the crypto industry? Do you believe stricter measures are necessary to address the risks involved, or do you have concerns about stifling innovation? Share your thoughts and opinions about this subject in the comments section below.
US Treasury Secretary Janet Yellen Urges Congress to Act Quickly on Debt Limit, States Defaulting Would Be ‘Unthinkable’
U.S. Treasury Secretary Janet Yellen has warned again about the consequences of the U.S. defaulting on its debt. During a press conference in Niigata, Japan, Yellen stated that this would be a self-inflicted crisis, and urged Congress to act quickly on the matter, stating that defaulting would be an unthinkable outcome on this issue.
US Treasury Secretary Janet Yellen Urges Congress to Act Quickly to Avoid Debt Default
U.S. Treasury Secretary Janet Yellen has urged Congress to act quickly on the issue of raising the debt ceiling to avoid a possible debt default that would bring negative consequences for the economy of the country. In a press conference in Niigata, Japan, ahead of the G7 meeting of finance ministers and central bank governors, Yellen warned again about the terrible effects that such an event would cause.
Yellen declared:
There is no good alternative that will save us from catastrophe. I don’t want to get into ranking which bad alternative is better than others, but the only reasonable thing is to raise the debt ceiling and to avoid the dreadful consequences that will come.
Furthermore, Yellen stated that, for her, this would be a self-inflicted crisis that has no reason to be happening. She explained:
There is no good reason to generate a good crisis of our own making. The U.S. Congress has raised or suspended the debt limit almost 80 times since 1960. I urge it to act quickly to do so once again.
Defaulting Would Be ‘Unthinkable’
Yellen had warned before about the catastrophe that the U.S. defaulting on its debt would mean for the economic system of the country and markets worldwide. Yellen also referred to this issue this time, stating that the consequences would be unthinkable.
She explained:
The notion of defaulting on our debt is something that would so badly undermine the U.S. and global economy that I think it should be regarded by everyone as unthinkable. America should never default.
Bipartisan negotiations on the debt limit issue have not been successful, as the Republican party demands a series of cost cuts that would affect spending in some key areas for the Democrat side, including healthcare and other social benefits. Negotiations are slated to restart this Friday, and Yellen is “very hopeful” that the two parties will be able to bridge their differences to raise the debt limit.
What do you think about U.S. Treasury Secretary Janet Yellen and her take on a possible debt default? Tell us in the comments section below.
US Treasury Secretary Janet Yellen Acknowledges Sanctions Weaponization Could Hurt Dollar Hegemony
U.S. Treasury Secretary Janet Yellen talked about the dangers that sanctions based on the U.S. dollar might pose for the hegemony of the currency in international markets. According to Yellen, the government tries to use sanctions “judiciously,” as they can create a desire to find alternatives to the U.S. dollar.
U.S. Treasury Secretary Yellen Talks Dangers of Dollar Weaponization
Janet Yellen, Treasury Secretary of the United States, has referred to the possible effects that continued use of sanctions could exert on the hegemony of the U.S. dollar in international markets. In an interview reviewed by Reuters, Yelled acknowledged that such a danger does exist in the long term.
On the issue, she stated:
So, there is a risk when we use financial sanctions that are linked to the role of the dollar, that over time it could undermine the hegemony of the dollar, as you said. But this is an extremely important tool we try to use judiciously.
Yellen recognizes that such sanctions push countries like China and Russia to seek alternatives to the U.S. dollar, in order to conduct trades even when affected by these sanctions. However, she also explained that this is no easy task due to the unique traits of the dollar. Yellen expanded on this, declaring:
We haven’t seen any other country that has the basic infrastructure – institutional infrastructure – that would enable its currency to serve the world like this.
This is the same conclusion that a report from the Bank of Russia, titled “Review of the Russian Financial Sector and Financial Instruments” reached, stating that substituting the U.S. dollar will be difficult due to the current structure of foreign trade.
Sanctioned Countries Seek Alternatives
Even with all the difficulties, countries with individuals and entities sanctioned by the Office of Foreign Asset Control (OFAC) like China, Russia, and Iran, are starting to develop integration policies that allow them to conduct trade away from the U.S. dollar.
China and Russia have already started to conduct settlement transactions using the Chinese yuan, leveraging specially designated banks as clearing entities to facilitate these payments. In his recent visit to China, Brazilian President Luiz Inacio ‘Lula’ da Silva called for developing nations to abandon the U.S. dollar and for BRICS to establish a new currency.
The insurance of a BRICS currency will be debated at the next BRICS summit, which will be held in South Africa in August, according to statements from a Russian State Duma official. Russia and Iran are also finalizing an agreement to deepen their trade collaboration, avoiding the crippling sanctions that the U.S. has enacted against them.
What do you think about U.S. Treasury Secretary Yellen’s stance on sanctions and the future of the U.S. dollar? Tell us in the comment section below.
Janet Yellen Says ‘Critical’ to Establish Strong Crypto Regulation — ‘We Haven’t Suggested Outright Banning’
U.S. Treasury Secretary Janet Yellen says “it is critical to put in place a strong regulatory framework” for crypto on the sidelines of the G20 meeting for finance ministers and central bank governors. “We haven’t suggested outright banning of crypto activities,” Yellen added.
Janet Yellen on ‘Strong’ Crypto Regulation
U.S. Treasury Secretary Janet Yellen talked about crypto regulation in an interview with Reuters Saturday on the sidelines of the G20 meeting for finance ministers and central bank governors under India’s presidency in Bengaluru.
Yellen emphasized the importance of establishing a robust regulatory framework for cryptocurrencies while clarifying that the U.S. has not proposed an outright ban. The treasury secretary said:
We haven’t suggested outright banning of crypto activities, but it is critical to put in place a strong regulatory framework … We’re working with other governments.
Crypto regulation was among the key topics discussed by the G20 finance ministers and central bankers under India’s presidency this weekend. During the meeting, India asked the International Monetary Fund (IMF) and the Financial Stability Board (FSB) to develop a joint paper on crypto in order to help formulate “a coordinated and comprehensive policy approach to crypto assets.”
Indian Finance Minister Nirmala Sitharaman has been pushing for international cooperation on crypto regulation for months. She said prior to the G20 meeting that India was having “detailed discussions” with G20 members on crypto regulation to establish a technology-driven regulator framework or standard operating procedure (SOP) on crypto.
In the U.S., the Securities and Exchange Commission (SEC) has recently stepped up its enforcement efforts against crypto firms. The SEC recently charged crypto exchange Kraken over its staking program and Nexo over its Binance USD (BUSD) stablecoin issuance. The securities watchdog also charged Terraform Labs and CEO Do Kwon for defrauding investors.
IMF Managing Director Kristalina Georgieva also said on the sidelines of the G20 meeting this weekend that crypto needs “more regulation.” While noting that there must be a “very strong push for regulation,” she said: “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.”
In addition, the executive board of the IMF provided guidance this week to help countries develop effective crypto policies. A few executive board directors thought that “outright bans should not be ruled out.” In addition, the board advised: “Crypto assets should not be granted official currency or legal tender status.”
What do you think about Treasury Secretary Janet Yellen’s statement about crypto? Let us know in the comments section below.