Regulate Cryptocurrencies? Not Yet
Janet Yellen should give digital currencies the time they need to innovate and evolve.
How much regulation is too much?
Photographer: Jack Taylor/Getty Images EuropeAt her confirmation hearing last week, Treasury Secretary Janet Yellen said many cryptocurrencies are used “mainly for illicit financing, and I think we really need to examine ways in which we can curtail their use.” Although her written testimony says the government also needs to “look closely at how to encourage their use for legitimate activities,” it seems clear: More regulation of cryptocurrencies is on the way.
There are already proposed regulations, now possibly being reconsidered, to require much greater reporting and monitoring of transfers from private crypto “wallets.” If more comprehensive rules are in the works, what would they look like?