Secretary Of Treasury’s Statements On Crypto Executive Order Leaked

crypto executive order

Welcome back to the Tribe! In this post we dive into the leaked comments from Janet Yellen on the Crypto Executive Order!

Nothing should be considered investment or financial advice. Enjoy the ride!

Crypto Executive Order

The US president Joe Biden is supposed to release the executive order on digital assets today Wednesday. But, it seems we have a sneak peek into the order and what to expect from it.

Janet Yellen Comments

US secretary of the treasury Janet Yellen accidentally posted her comments on the order a day early which was hastily removed but can be found in archive.org.

The executive order that proposes a comprehensive regulation for cryptocurrency and other digital assets has been long coming. But, it was actually hastened by the sanctions on Russia and the concerns that digital assets could be used to evade them.

Now, the leaked statement did not state any material action but hints on how the treasury department will prepare reports and examine the risks associated with digital assets.

According to Yellen the approach of the regulation proposed in the order will support beneficial innovation.

“President Biden’s historic executive order calls for a coordinated and comprehensive approach to digital asset policy. This approach will support responsible innovation that could result in substantial benefits for the nation, consumers, and businesses.” she said.

There have also been concerns about using crypto to finance crime and other shady businesses hence, the need for regulation. But on the other hand, the approach needs to be balanced to also protect the interest of investors.

Addressing Risks

Yellen said the executive order:

“will also address risks related to illicit finance, protecting consumers and investors, and preventing threats to the financial system and broader economy.”

The volatility and the risks of digital assets have been a top question with the authorities. Yellen in her statement gives a hint on how the regulation will approach this.

“Under the executive order, Treasury will partner with interagency colleagues to produce a report on the future of money and payment systems. We’ll also convene the Financial Stability Oversight Council to evaluate the potential financial stability risks of digital assets and assess whether appropriate safeguards are in place.”

She also proposed international partnerships to regulate the cross-border dimensions of digital assets. The cross-border component of the regulation is one we await because at the moment cryptocurrency is largely unregulated in various parts of the world.

The treasury department has been studying stablecoins for a while now. There are also hints that a fully digital dollar might be in the works. Speaking on stablecoins the secretary said;

“This work will complement ongoing efforts by Treasury. Already, the Department has worked with the President’s Working Group on Financial Markets, the FDIC, and OCC to study one particular kind of digital asset – stablecoins– and to make recommendations.”

Promoting Fairness

Finally, she ended her statement by reiterating the department’s resolve to work with consumer and investor protection groups, market participants, and other leading experts. The goal is to promote a fairer, more inclusive, and more efficient financial system and prevent risks to financial stability and national security.

The leaked statement touched on the speculated areas that the regulation will cover. Although we cannot fully know the extent of the regulation from the statement, it gives us an idea of what to expect.

Crypto Services In Singapore

Singaporean subsidiary of Swiss crypto bank receives regulatory approval to offer more virtual asset services within the Southeast Asian country. The green light has been given in principle and is yet to take full effect.