There are gaps in the regulatory framework for digital assets that should be addressed through legislation, Janet Yellen told CNBC.
“We’ve identified a number of risks [with crypto]. I’m supportive of those agencies to use the tools they have,” says @SecYellen. “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.” pic.twitter.com/leZjF5QRU0
— Squawk Box (@SquawkCNBC) June 7, 2023
“We have identified a number of risks. I support the agencies [SEC and CFTC] in using the tools at their disposal. We are prepared to work with Congress to enact additional oversight,” the official said.
In November 2022, the collapse of FTX showed the crypto industry’s need for “very careful regulation”.
In early June the SEC filed suit against Binance and its CEO Changpeng Zhao. The Commission accused the defendants of unregistered activity, illegal offering of securities to investors, and the commingling of customer and corporate assets.
Subsequently, the regulator filed suit against Coinbase. The SEC’s claims concern the company’s consolidation of broker, exchange and clearinghouse functions, its staking program, and other violations of securities laws.
Earlier in 2023, the Commission flagged violations in the operations of Bittrex, Coinbase, Kraken, Gemini and Genesis. The CFTC filed suit against Binance and its CEO Changpeng Zhao.
In April 2023, SEC Chair Gary Gensler faced criticism over his agency’s stance on digital assets during hearings before the U.S. House of Representatives.
Earlier, Congressman Warren Davidson announced a bill that would remove Gensler from the post of the agency’s chairman.