During a Group of Twenty (G20) meeting on February 25, US Treasury Secretary Janet Yellen stressed the importance of developing a strong regulatory framework for cryptocurrencies.

Yellen said it was “essential to establish a strong regulatory framework” while speaking to Reuters. In addition to this, she stressed that the United States does not advocate an “absolute ban on crypto activity.”

Yellen’s comments follow previous ones made by the managing director of the International Monetary Fund (IMF), Kristalina Georgieva, who stated that banning cryptocurrencies should be an option: “There has to be a very strong push for regulation…if regulation fails, if you are slow to do so, then we should not take the ban off the table” . those assets, because they can create financial stability risk.” Yellen’s comments follow Georgieva’s earlier statements.

Furthermore, Georgieva stressed to the media that it is critical to distinguish between stablecoins and cryptocurrencies, which are issued by private companies, and central bank digital currencies (CBDCs), which are issued by central banks.

Nirmala Sitharaman, who serves as India’s Finance Minister, has advocated for a unified approach internationally to address the widespread economic effects of crypto assets. Throughout her time in office, Sitharaman has been an advocate for the development of cryptocurrency legislation in collaboration with other governments. For several years, the Indian government has been debating whether cryptocurrencies should be regulated or banned outright.

The International Monetary Fund (IMF) issued an action plan on crypto assets on Feb. 23, urging governments to remove cryptocurrencies from their legal cash status. In the study which was dubbed “Elements of Effective Policy for Crypto Assets”, a framework of nine policy principles was detailed that addresses macro-financial, legal and regulatory challenges and international coordination.

Following a visit to El Salvador earlier this month, the International Monetary Fund (IMF) recommended the nation reconsider its plans to increase its exposure to Bitcoin. The IMF made this recommendation citing the risk that cryptocurrencies pose to El Salvador’s ability to maintain its fiscal sustainability, protect its consumers, and maintain its financial integrity and stability.