During an interview with CNBC program Squawk Box, US Secretary of the Treasury Janet Yellen said crypto has a major role in investment decisions for Americans.
Yellen restated her concerns towards digital assets viewing them as a threat to financial stability. Also, she mentioned the need to protect investors and the possibility that crypto can be used for illegal purposes.
In the interview, Yellen talked about Joe Biden's March executive order tasking federal agencies to develop reports related to regulations of cryptocurrencies.She accepted that there have been benefits from crypto and that the agency recognizes that innovation in payments can have good results.
Janet Yellen said the agency would like to define proposals that build a regulatory ground for innovation. Having criticized the crypto industry before, she said crypto has grown essentially and now plays a major role not that much in transactions but in investment choices for many Americans.
At this moment, the global crypto market cap stands at $2 trillion. Bitcoin trades at over $44,000, increasing by around 6% in the last 7 days.