US Secretary of the Treasury Janet Yellen stated the Treasury isn’t chargeable for ‘quarterbacking’ between the CFTC and the SEC relating to their opposing positions towards crypto regulation.
Yellen made the assertion throughout a July 9 listening to earlier than the Home Monetary Companies Committee.
Opposing positions
Home Monetary Companies Committee Chairman French Hill stated that the SEC and CFTC have taken opposing authorized positions in federal court docket on crypto and requested if the Treasury’s Monetary Stability Oversight Council (FSOC) is working to unite the 2 regulators.
Hill stated the council is “speculated to quarterback for monetary danger.” Nevertheless, Yellen disagreed, stating:
“It’s not the job of the Monetary Stability Oversight Council to adjudicate.”
She famous that the Treasury had revealed a report on crypto dangers, partly addressing dangers arising from an absence of settlement between regulators.
Earlier in her testimony, Yellen informed Hill she stays dedicated to attaining a regulatory framework for digital belongings and hopes the efforts “attain an excellent conclusion.”
Concentrated danger, Russian stablecoins
Yellen additionally responded to different questions associated to crypto. Congressman Mike Flood requested Yellen whether or not decentralized buying and selling protocols require a unique strategy to regulation from centralized companies.
Yellen answered that the SEC and CFTC are wanting on the problem and added that some issues “might fall below the regulatory umbrella of the banking businesses as properly.”
Flood additionally questioned whether or not SEC rulemaking might scale back custodial choices for crypto. He requested Yellen if a restricted variety of accepted custodians out there to registered funding advisors (RIAs) for Bitcoin ETFs would introduce concentrated danger.
The Treasury secretary responded that the development might pose a “potential” danger however declined to reply with certainty with out extra particulars.
Congressman Brad Sherman commented on the Russian central financial institution’s plans to bypass Western sanctions with crypto. Yellen stated that the Treasury is “very attentive” to the usage of crypto and stablecoins however doesn’t consider that Russia’s actions are substantial.