In a recent statement, former U.S. Federal Reserve chair and current Treasury secretary, Janet Yellen, expressed her desire for Congress to enact more regulatory measures concerning the cryptocurrency industry. Yellen cited Treasury reports on cryptocurrencies that have pinpointed various risks linked to the fast-growing sector.

Yellen Sees 'Holes in the System Where Additional Regulation Would Be Appropriate'

During a "Squawk Box" interview on CNBC with Andrew Ross Sorkin on Wednesday morning, the conversation ranged from the debt ceiling to the state of the U.S. economy but also delved into digital currencies in light of recent lawsuits filed by the U.S. Securities and Exchange Commission against Binance and Coinbase. Yellen alluded to Treasury reports examining crypto, a requirement issued by President Joe Biden's executive order on the topic.

Yellen fervently believes that increased regulation is necessary within the crypto domain and advocates for Congress to take action and establish appropriate policies. "We've identified a number of risks [with crypto]. I'm supportive of those agencies to use the tools they have," Yellen told Sorkin. Yellen added:

"I see some holes in the system where additional regulation would be appropriate. We'd like to work with Congress to see additional regulation pass."

On numerous occasions, Yellen has endorsed stringent regulations for cryptocurrencies. During February's G20 meeting, she informed reporters that establishing a robust regulatory framework was crucial. In November 2022, Yellen referred to the FTX collapse as a "Lehman moment" and emphasized that the crypto industry necessitates "adequate regulation." Yellen's latest comments with Sorkin surfaced after SEC Chair Gary Gensler appeared on CNBC just one day prior, declaring that "we don't need more digital currency."