Janet Yellen, the Secretary of the US Treasury, has been asked by Senator Elizabeth Warren for the immediate introduction of crypto policy and rules in order to circumvent the risks that are rising briskly. Elizabeth insisted that there is a dire need to adopt an efficient regulatory mechanism for addressing the potential risks that are jeopardizing the country’s national interest. She suggests that any further delay for the provision of regulation would only worse the risks further which in turn would have long-lasting consequences.
Senator Elizabeth Warren is one of those bureaucrats who want a quick response when the matter involves regulating the virtual asset industry. However, the lawmaker was quiet for some time because the talks of crypto regulation had reached the bureaucracy. But when the regulator did not consider crypto regulation within its year-wise agenda, she had to raise her voice again. Warren is concerned that neither the Securities & Exchange Commission nor Federal Reserve had issued any policy guidelines with regard to crypto.
She has now moved her attention towards the Secretary for State Treasury, Janet Yellen. It has been reported that Warren has recorded her concerns over the non-provision of crypto regulation through a letter. In this letter, Warren has raised several issues pertaining to crypto and discusses the potential risks that could lead to grave consequences.
Warren says in the letter that it has been addressed to Janet Yellen because she is the Financial Stability Oversight Council’s Chairman. She then deliberates upon the need for having crypto regulation as early as possible. She suggests in her letter that the crypto regulation requires cohesive as well as coordinated strategy. Without the coordination, the regulation would not be able to reduce the crypto risks that are increasing on a fast pace basis. She warned that if regulation is kept pending for any further period, then it will seriously affect the US’s financial system.
Warren further explained that it is the responsibility of FSOC’s Chairman to identify the risks and then act upon them for upholding financial stability. Shen then described that her concerns over the non-provision of crypto regulation have made her worried. She pointed out that every individual associated with the financial system knows that the usage of crypto is dangerous. If crypto were to be regarded as “currency” then it has to be treated and regulated like a currency. She stated that presently the US consumers, as well as their investments, are in grave danger because of the lack of crypto regulation.
She drew Yellen’s attention to the fact that the demand for virtual assets is growing every second. Virtual assets have become a necessary component of our day-to-day financial system. However, crypto regulation calls for immediate consideration otherwise it will be too late to diminish the long-lasting consequences.