US Treasury Secretary Janet Yellen told CNBC on Friday that cryptocurrencies are now "obviously playing a significant role" in investment decisions of lots of Americans. She noted though she is still has a "little bit of skepticism" because of "valid concerns around it."
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She particularly noted that the current issues around the crypto market have to do with "financial stability, consumer investor protection, use for illicit transactions and other things." Nonetheless, there are also benefits:
"[...] there have been benefits from crypto and we recognize that innovation in the payment system can be a healthy thing," she went on, adding:"we would like to come out eventually with recommendations that will create a regulatory environment in which healthy innovation can."
Yellen also mentioned Biden's executive order tasking regulators and other agencies with thinking about the regulation of crypto. As iHodl earlier reported, Joe Biden signed an executive order to study the legal and economic conditions for developing a US central bank digital currency (CBDC), and how the US authorities can protect crypto investors.
The order lays out a national policy for cryptocurrencies across six key priorities, including investor protection and financial stability.
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