‘National Security’—Yellen Let Slip Her Plan to Regulate Crypto As The Price Of Bitcoin, Ethereum, BNB, XRP, Solana, Cardano, And Dogecoin Sink

Bitcoin and cryptocurrency prices are in the red this week.

The bitcoin price fell below $40,000, and is now 15% down from its March highs. Ethereum’s price dropped 7.8%, BNB 3.6%, terra 20%, solana 13.8%, cardano 12.9%, and XRP 0.7%, and dogecoin 2.12%.

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Meanwhile, last week Treasury Secretary Janet Yellen gave her first speech about cryptocurrencies and their regulation. While her address had an unexpected pro-crypto undertone, Yellen called for a tougher regulatory stance.

“Consumers should be protected from fraud regardless of whether assets are stored on a balance sheet or distributed ledger…. Money-laundering and other illicit activity should be deemed illegal, and it doesn’t matter whether you’re using checks, wires or cryptocurrency,” she said.

Yellen also made a few subtle remarks that may hint at how regulators will guide crypto policy in the future.

[Ed note: Investing in crypto is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]

The Digital Dollar

For much of the past century, the dollar enjoyed the benefits of the world’s reserve currency. And Yellen stressed that retaining this privilege should be regulators’ priority in their approach to digital assets.

“The development of our currency to its current form has been a dynamic process that took place over centuries. Today, monetary sovereignty and uniform currency have brought clear benefits for economic growth and stability. Our approach to digital assets must be guided by the appreciation of those benefits,” she said.

As such, Yellen believes, that while the government should push for financial innovation that ensures “competitiveness and growth,” it should also pursue its “national security interests.”

She suggested that a central bank-issued digital currency (CBDC) could fulfil the…