Janet Yellen calls for tech-neutral cryptocurrency regulation in the US

“When new technologies enable new activities, products, and services, financial regulations need to adjust“

U.S. Treasury Secretary Janet Yellen

Treasury Secretary, Janet Yellen, calls forcryptocurrency regulation in the US with tech-neutral regulation and a public-private dialogue on cryptocurrency.

According to excerpts from her first speech dedicated specifically to digital assets in a landmark speech, US Treasury Secretary, Janet Yellen, wants to bring the crypto business up to par with the regular US financial system and subject it to the same standards.

On Thursday, US Treasury Secretary, Janet Yellen, stated that Bitcoin and other digital assets should be regulated in a “tech neutral” manner. These rules should encourage “responsible innovation” that is informed by “thoughtful public-private discourse.”

When new technologies enable new activities, goods, and services, financial rules must adapt, according to Yellen who stated: “But, that process should be guided by the risks associated with the services provided to households and businesses, not the underlying technology”.

Janet Yellen wants to make it easier for users to submit tax on digital assets

Furthermore, Yellen supports crypto paperwork comparable to that of stocks and bonds to make it easier for users to submit taxes on digital assets.

“Taxpayers should receive the same type of tax reporting on digital asset transactions that they receive for transactions in stocks and bonds, so that they have the information they need to report their income to the IRS.”  Yellen said.

Yellen also wants to clarify who is responsible for the security of these digital assets. She believes that crypto businesses should be compelled to ensure that client assets are not lost, stolen, or used without the user’s permission. This alone raises questions about the US Treasury Secretary’s understanding of how decentralized some crypto businesses are, making it almost impossible to name “a responsible for the security of the digital assets”.

The recent executive order signed by President Joe Biden asks government agencies to create a framework for the digital asset market.

Some politicians want regulators to tighten down on the business because of the significant volatility in crypto-asset price and its decentralized character, causing market fears about stricter restrictions. However, the White House and Treasury Department’s messaging about encouraging responsible innovation through public-private crypto discussion has allayed some of those fears.