US Treasury Secretary Janet Yellen addressed Congress last week, highlighting the potential risks that digital currencies bring to the country’s economy.
She stated that unsecured cryptocurrencies pose a specific danger to the stability of the financial industry, with stablecoins tied to traditional currencies being a more secure option compared to Bitcoin.
Yellen also informed senators that the Treasury Department is prepared to join in the effort to combat criminal activities involving virtual assets.
The department has observed an increase in the use of digital currencies by terrorist organizations and is determined to address this threat, but it requires enhanced control measures over the circulation of virtual assets.
During her speech, Yellen emphasized the need for appropriate legislation and the provision of legal and technical tools for her department to effectively combat illicit capital flows through the crypto market.
If Congress grants the necessary powers, the Treasury Department will be better equipped to tackle this issue.
