U.S. Treasury Janet Yellen calls for 'strong regulatory framework' for crypto activities

United States Treasury Secretary Janet Yellen stressed the value of implementing a beardown regulatory model for cryptocurrencies during a G20 gathering connected Feb. 25. 

Speaking to Reuters, Yellen said that it was "critical to enactment successful spot a beardown regulatory framework." She besides noted that the United States is not suggesting an "outright banning of crypto activities."

Yellen's remarks travel earlier ones from the International Monetary Fund (IMF) Managing Director Kristalina Georgieva, stating that banning crypto should beryllium an option:

"There has to beryllium precise beardown propulsion for regulation... if regularisation fails, if you're dilatory to bash it, past we should not instrumentality disconnected the array banning those assets, due to the fact that they whitethorn make fiscal stableness risk."

In addition, Georgieva pointed retired to reporters that it is indispensable to differentiate cardinal slope integer currencies (CBDCs) from stablecoins and cryptocurrencies - which are issued by backstage companies. 

Related: What are CBDCs? A beginner's usher to cardinal slope integer currencies

In an earlier conference, the archetypal G20 Finance Ministers and Central Bank Governors (FMCBG) gathering nether India’s presidency addressed cardinal fiscal stableness and regulatory priorities, Cointelegraph reported.

The country's Finance Minister Nirmala Sitharaman called for a coordinated planetary argumentation to code the macro-financial implications of crypto assets. Sitharaman has historically supported moving with different jurisdictions successful the improvement of crypto regulations. For respective years, India's authorities has debated whether to modulate oregon adjacent prohibition cryptocurrencies.

On Feb. 23, the IMF released an enactment program connected crypto assets, urging countries to abolish ineligible tender presumption for cryptocurrencies. The paper, titled “Elements of Effective Policies for Crypto Assets,” outlined a model of 9 argumentation principles addressing macrofinancial, ineligible and regulatory, and planetary coordination issues.

After a sojourn to El Salvador earlier this month, the IMF suggested the state reconsider its plans to summation vulnerability to Bitcoin, citing the cryptocurrency hazard to El Salvador's fiscal sustainability and user protection, arsenic good arsenic its fiscal integrity and stability.