Updated on:12/02/2025 05:54 PM 
US Treasury Secretary Janet Yellen appeared on CNBC's Squawk Box this morning and spoke with Andrew Sorkin about Bitcoin and the future of cryptocurrency regulation in America.
Secretary Yellen discussed the overall US economic landscape and highlighted her optimism as the job market strengthens and unemployment figures continue to decline.
Following their economic discussion, Sorkin referenced El Salvador's recent decision to accept Bitcoin payments for energy purchases and inquired about America's position on cryptocurrency regulation.
“Crypto has grown by leaps and bounds, and is now playing a significant role in the investment decisions of many Americans. We would like to … create a regulatory framework in which sound innovation can thrive.” – @SecYellen on #Bitcoinpic.twitter.com/UHKqf6bvrV
— Michael Saylor⚡️ (@saylor) March 25, 2022
Secretary Yellen began her response by acknowledging Bitcoin's increasing prominence as an investment vehicle. She stated:
“Crypto has grown by leaps and bounds, and is now playing a significant role in the investment decisions of many Americans.”
It appears that President Biden is also cognizant of Bitcoin's impact and is preparing to establish comprehensive oversight. According to Yellen, the President issued an executive order several weeks ago, directing the Treasury Department and other agencies to develop cryptocurrency regulatory frameworks.
Secretary Yellen had referenced this executive order previously as well. On March 9th, she commented on Biden's cryptocurrency executive order, stating:
“President Biden's recent executive order calls for a coordinated and comprehensive approach to digital asset policy. This approach will support responsible innovation that could result in substantial benefits for our country, consumers and businesses.”
The Treasury Secretary continued by addressing potential risks:
“It will also address risks related to illicit finance, protecting consumers and investors, and preventing threats to the financial system and broader economy.”
When Sorkin asked Secretary Yellen about her perspective on cryptocurrency, she acknowledged legitimate concerns while also recognizing its potential advantages. Most of her concerns centered around security issues. She explained:
“I believe there are legitimate concerns around it. Some have to do with financial stability, consumer and investor protection, use for illicit transactions, and other matters. On the other hand, there are also benefits from crypto.”
After outlining their primary concerns regarding cryptocurrency, Secretary Yellen confirmed that they were also mindful of its benefits. She mentioned that regulation could have a positive effect on the financial systems as long as it's 'sound.'
Furthermore, she hinted at the nature of impending US regulations as balanced guidelines that ensure the healthy development of crypto. She stated:
“We recognize that innovation in the payment system can be a good thing. We would like to come forward with recommendations that will create a regulatory framework in which sound innovation can flourish”
