U.S. Treasury Secretary Janet Yellen has acknowledged the advantages that the adoption of digital assets might bring to several key economic activities. After the Asia Pacific Economic Cooperation (APEC) finance ministers’ meeting, Yellen stated that while digital assets do pose risks, they have the potential to increase financial inclusion.
U.S. Treasury Secretary Janet Yellen Acknowledges Potential of Digital Assets
U.S. Treasury Secretary Janet Yellen acknowledged the possibilities that adopting digital assets might bring to several areas in the economies of the Asia Pacific Economic Cooperation (APEC). In a speech given after the APEC Finance Ministers’ Meeting held in San Francisco, Yellen delved into the achievements of the officials of the 21 different economies integrating the organization.
We see increasing adoption of digital asset technologies across the region and note their potential to increase financial inclusion and reduce the cost of cross-border transactions.
However, Yellen stressed this potential cannot be fulfilled without compliance. Yellen, who chaired the meeting, also warned about the problems that uncontrolled adoption of these assets might originate, stating that “digital asset technologies carry risks” and calling for establishing “proper regulation and other policies to manage those risks.”
The Need for Regulation
Yellen reported that topics like digital assets regulation, sustainability, and inclusion were discussed during the APEC meeting. She declared the group cemented its progress on key priorities, with advancing the group’s approach to digital assets’ regulation being one of them.
The U.S. Treasury secretary also said that APEC had achieved a commitment to continue working on the “responsible development” of digital assets, sustaining that many APEC economies were already leaders in this industry.
Yellen has supported establishing regulations for digital assets, calling to plug the holes that the current legal framework presents for these. In November 2022, after the demise of FTX, Yellen stressed that the effects of this event demonstrated “the need for more effective oversight of cryptocurrency markets.” At the time, she added that Congress should “move quickly to fill the regulatory gaps the Biden Administration has identified.”
More recently, during an interview given in June, Yellen reiterated her call to Congress to step up and pass “appropriate regulation” where needed, proposing to do joint work to achieve this goal. She also signaled her support for government agencies taking action on crypto cases “using the tools they have.”
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