Janet Yellen acknowledges the popularity of cryptocurrencies among Americans

U.S. Treasury Secretary Janet Yellen said in an interview with CNBC that digital assets are important in Americans’ investment decisions.

“Cryptocurrency has grown by leaps and bounds, and now it plays a significant role not so much in transactions as in the investment decisions of many Americans,” she said.

Yellen reaffirmed her skepticism toward digital assets due to threats to financial stability, the need to protect retail investors, and the use of cryptocurrencies in illicit activities.

“On the other hand, cryptocurrencies have advantages, and we recognise the benefits of innovation in the payments system. Ultimately, we want to issue recommendations for creating a regulatory framework,” she added.

In the interview, Yellen also mentioned the March executive order by U.S. President Joe Biden, which directs federal agencies to coordinate their efforts in regulating the cryptocurrency industry.

In December 2021, Yellen stated the necessary consensus among authorities for issuing a digital dollar.

Earlier, the U.S. Treasury released a report on the risks associated with stablecoins. The department saw threats to investors and market integrity in stablecoins, and called for stringent regulatory restrictions.

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