Inside Yellen’s Congressional Testimony on Crypto’s Future

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US Treasury Secretary Speaks On Crypto Regulations
  • U.S. Treasury Secretary Janet Yellen denies directing the SEC and CFTC on crypto regulation before the House Financial Services Committee. 
  • Yellen’s comments are seen as potentially relevant to the U.S., potentially influencing the upcoming election and helping the Biden campaign. 
  • Federal Reserve Chairman Jerome Powell needs more evidence to cut interest rates, suggesting a cautious approach.

U.S. Treasury Secretary Janet Yellen denied providing direction or coordination to the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) on cryptocurrency regulations during her testimony before the U.S. House Financial Services Committee.

The Treasury Secretary’s remarks come amidst ongoing debate about the role of various regulatory bodies in overseeing the rapidly evolving digital currency industry. Yellen’s comment suggests that she has not been directing or coordinating the actions of the SEC and CFTC, two key regulatory bodies in the U.S. financial system.

Eleanor Terrett, a Fox Business reporter, highlighted Yellen’s cryptocurrency views in her post on X (formerly Twitter).

U.S. Treasury Secretary Janet Yellen addressed the House Financial Services Committee on the same day that Fed President Jerome Powell spoke to the Senate Banking Committee. In her testimony, Yellen stated that there is no “quarterback” (manager/coordinator) between the SEC and the CFTC in cryptocurrency regulation.

This comment holds significance in the context of the upcoming U.S. elections. While the severity of crypto regulations and the voting potential of cryptocurrencies are being debated in the lead-up to the election, Yellen’s comment that “we are not involved” in crypto regulation has been interpreted by some as support for Biden’s electoral campaign.

Powell, who has adopted a cautious approach thus far, stated that more favorable evidence is needed for interest rate decreases.

Before the Senate Committee on Banking, Housing, and Urban Affairs, the Federal Reserve chair faced questions from both sides of the aisle. Senators Sherrod Brown and Tim Scott criticized the central bank director for high interest rates and new financial restrictions.

In his opening remarks, Powell stated that the economy’s risks had become more balanced, allowing him to widen his focus beyond lowering inflation. The Fed chair said he is closely monitoring signs of weakening in the employment market and the broader economy.

Powell is scheduled to return to Congress on Wednesday to appear before the House Committee on Financial Services.

Yellen’s testimony underscores the fragmented nature of U.S. crypto regulation, with the SEC and CFTC operating independently. This lack of coordination from the Treasury Department further complicates the regulatory landscape for the rapidly evolving digital asset industry.

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