US treasury secretary Janet Yellen stressed the need for a clear-cut regulatory approach towards cryptocurrencies and digital currencies during a G20 meeting on February 25.
Her remarks come as the Financial Action Task Force is considering enforcing a “travel rule” it passed in 2019 that seeks to make global jurisdictions comply with mandatory crypto regulatory standards and reporting of transactions.
Yellen’s comments also coincided with the International Monetary Fund saying that it strongly urges governments to refrain from recognizing Bitcoin and other cryptocurrencies as legal tender.
Yellen insisted that it was critical to introduce a strong regulatory framework, although she cautioned that the US did not mean to immediately ban or sanction any crypto activities.
A ban would be counter-productive, Yellen explained, but urged for more to be done to work on an international regulatory framework.
Even though Yellen has said that regulation in the US is not looking to ban crypto activities, this is not entirely true.
Staking and trading have come under attack by the US Securities and Exchange Commission. Yellen assured that the US has already started working with other governments to bring around the necessary robust framework.
FATF has been looking to actively enforce the travel rule in a bid to make jurisdictions accountable for tracking money laundering and other financial crimes that may be taking place on the blockchain.