United States Treasury Secretary Janet Yellen reiterated her call for more regulation of cryptocurrencies on Wednesday, saying that she sees “some holes in the system where additional regulation would be appropriate.”
Speaking to CNBC’s Squawk Box, Yellen said that the Treasury Department has “identified a number of risks” relating to cryptocurrencies, including their potential to be used for money laundering and terrorist financing. She added that she would “like to work with Congress to see additional regulation pass.”
Yellen’s comments come as the cryptocurrency industry is facing increased scrutiny from regulators around the world.
In recent months, the U.S. Securities and Exchange Commission (SEC) has filed lawsuits against several cryptocurrency exchanges, alleging that they violated securities laws by offering and selling unregistered securities.
Yellen said that she was supportive of regulatory agencies using the tools they already have to protect investors, but that she also believes that Congress needs to pass new legislation to give regulators more authority to regulate cryptocurrencies.
“I think that there are some gaps in the law,” Yellen said. “And I think that Congress needs to move quickly to fill those gaps.”
Yellen’s comments are likely to be welcomed by many investors, who have been concerned about the lack of regulation in the cryptocurrency industry. However, some industry insiders have warned that too much regulation could stifle innovation in the space.