Treasury Will Assess Crypto Risks under Biden’s Executive Order: Janet Yellen

The US Treasury Secretary Janet Yellen released a statement on late Tuesday, which was later archived by her department, laying out the plans of how her department would implement the upcoming executive order by US President Joe Biden on digital assets.

“Under the executive order, Treasury will partner with interagency colleagues to produce a report on the future of money and payment systems,” Yellen said.

“We’ll also convene the Financial Stability Oversight Council to evaluate the potential financial stability risks of digital assets and assess whether appropriate safeguards are in place. And, because the questions raised by digital assets often have important cross-border dimensions, we’ll work with our international partners to promote robust standards and a level playing field.”

Upcoming Order on Crypto

President Biden is expected to sign the executive order as soon as Wednesday, but there is no official confirmation at this time. Yellen’s archived statements now bolster all the media reports on the White House’s crypto plans.

She called President Biden’s move ‘historic’ and the coordinated approach on the policies around cryptocurrencies will ‘support responsible innovation. Further, “it will also address risks related to illicit finance, protecting consumers and investors, and preventing threats to the financial system and broader economy.”

Additionally, Yellen said that the reports will complement the ongoing efforts by Treasury, which already worked with other agencies to made recommendations on stablecoins.

“As we take on this important work, we’ll be guided by consumer and investor protection groups, market participants and other leading experts. Treasury will work to promote a fairer, more inclusive and more efficient financial system while building on our ongoing work to counter illicit finance, and prevent risks to financial stability and national security,” Yellen added.