- Cryptocurrencies are growing “in leaps,” says U.S. Treasury Secretary Janet Yellen.
- She adds that cryptocurrency-driven innovation in the financial system could be “something positive.”
- The United States will seek to provide a regulatory environment that supports innovation in the industry, Yellen told CNBC.
U.S. Treasury Secretary Janet Yellen says the United States recognizes a role for cryptocurrencies within the country’s financial system.
According to Yellen, cryptocurrencies have seen significant growth over the past several years — growth she described as “in leaps.”
She noted that most Americans now use cryptocurrencies not only for transactions but increasingly as investment assets.
Cryptocurrency innovation could be “something positive”
While acknowledging her own past skepticism toward cryptocurrencies, Yellen said the technology has delivered benefits and has been a driving force behind innovations across the American financial system.
“Cryptocurrencies have brought us benefits, and we recognize that innovations in the payments system can be beneficial,” she told CNBC.
Referencing the recently signed “executive order on cryptocurrencies,” Yellen said the Treasury Department and other government agencies have been tasked with producing regulatory recommendations that encourage innovation in the sector.
She noted regulators are still studying the cryptocurrency space to determine appropriate policy guidance. Ultimately, she said, it will be necessary to develop “recommendations that create a regulatory environment” that supports productive innovation.
Regulatory concerns around cryptocurrencies have largely focused on potential risks to financial stability and illicit uses such as money laundering and tax evasion.
Consumer protection issues have also been raised and remain a priority even as regulators try to avoid stifling beneficial innovation through poorly designed rules.
Bitcoin reaches $45,000
Yellen’s comments came just one day after Russia signaled it might accept Bitcoin for oil and gas payments as it faces sanctions.
Russia’s move, combined with other macroeconomic factors, contributed to a more positive market tone, and Bitcoin rose above $45,000.