<p><span style="font-weight: 400;">The Treasury has staked out its vision for crypto policy, sort of.</span></p> <p><span style="font-weight: 400;">On April 7, Treasury Secretary Janet Yellen gave a speech on digital assets — the </span><a href="https://www.theblockcrypto.com/post/141010/treasury-secretary-yellens-first-speech-on-crypto-will-focus-on-existing-laws-except-for-stablecoins"><span style="font-weight: 400;">first of its kind during her term</span></a><span style="font-weight: 400;">. The speech is an early response to </span><a href="https://www.theblockcrypto.com/linked/136883/janet-yellen-says-bidens-crypto-executive-order-supports-responsible-innovation"><span style="font-weight: 400;">President Biden’s March executive order</span></a><span style="font-weight: 400;"> calling for agencies to coordinate efforts on cryptocurrency policy. In that respect, it is the first response of its kind from any agency.</span></p> <p><span style="font-weight: 400;">Speaking at American University’s Don Myers Technology &amp; Innovation Building, Yellen took the stage to Stevie Wonder’s Superstition and left to Creedence Clearwater Revival’s Have You Ever Seen the Rain, setting up a notable contrast between a sleek contemporary lecture hall and 50-year-old pieces of Americana. </span></p> <p><span style="font-weight: 400;">Yellen’s speech featured no bombshells — indeed, it seemed careful not to alarm stakeholders in the cryptocurrency industry. Instead, she carefully framed cryptocurrencies and her prognosis for their regulation in relation to historical parallels.</span></p> <p><span style="font-weight: 400;">Casting back to Alexander Hamilton and the private banknotes that precipitated the National Banking Act under Lincoln, Yellen affirmed “A crisis catalyzed reform.”</span></p> <p><span style="font-weight: 400;">What does this mean in the context of cryptocurrencies? Like others in the administration — most conspicuously </span><a href="https://www.theblockcrypto.com/post/117675/crypto-lending-staking-custody-gensler-sec"><span style="font-weight: 400;">Securities and Exchange Commission Chair Gary Gensler</span></a><span style="font-weight: 400;"> — have suggested, cryptocurrencies and the firms that handle them largely fall under existing statutory categories. </span></p> <p><span style="font-weight: 400;">“Digital assets may be new, but many of the issues they present are not. We have enjoyed the benefits of innovation in the past, and we have also confronted some of the unintended consequences,” said Yellen, explaining:</span></p> <blockquote> <p><span style="font-weight: 400;">“The principle of tech neutrality is also applicable to concerns related to tax evasion, illicit finance, and national security – topics that are particularly pertinent in the world today. It’s </span><span style="font-weight: 400;">illegal to evade taxes, launder money, or avoid sanctions. It doesn’t matter whether you’re using checks, wires, or cryptocurrency.”</span></p> </blockquote> <p><span style="font-weight: 400;">Despite this, Yellen maintained the </span><a href="https://www.theblockcrypto.com/post/122890/us-treasury-releases-long-awaited-report-on-stablecoin-risk-features-request-for-new-laws"><span style="font-weight: 400;">President’s Working Group’s push for new legislation</span></a><span style="font-weight: 400;"> when it comes to stablecoins. She did not, however, explicitly support the PWG’s original push to restrict stablecoin issuance to insured depository institutions. </span></p> <p><span style="font-weight: 400;">The Treasury in general and Yellen, in particular, have had a busy week. </span></p> <p><span style="font-weight: 400;">On Wednesday, she appeared before the </span><a href="https://www.theblockcrypto.com/linked/140892/congresswoman-calls-yellen-to-account-for-work-on-targeting-crypto-in-russian-sanctions-evasion"><span style="font-weight: 400;">House Financial Services Committee to testify</span></a><span style="font-weight: 400;"> on the state of international finance, a conversation that focused heavily on the Treasury’s sanctions on Russia. The day before, the Treasury </span><a href="https://www.theblockcrypto.com/linked/140739/us-sanctions-worlds-largest-darknet-market-and-linked-russian-crypto-exchange"><span style="font-weight: 400;">sanctioned Russia-based darknet market Hydra</span></a><span style="font-weight: 400;"> and associated crypto exchange Garantex, an action that Yellen made mentioned in her two subsequent appearances. </span></p><br /><span class="copyright"><p>© 2023 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.</p> </span>