Janet Yellen, who was just lately nominated by US President Joe Biden for the submit of Treasury Secretary, stated that it’s “vital to think about the advantages of cryptocurrencies,” in keeping with her written testimony revealed at this time.
“I believe it vital we think about the advantages of cryptocurrencies and different digital belongings, and the potential they’ve to enhance the effectivity of the monetary system,” she stated, replying to a query about potential threats and advantages of cryptocurrencies.
A extra nuanced method
As CryptoSlate reported, Yellen drew a direct parallel between illicit exercise and cryptocurrencies through the US Senate Committee on Finance listening to earlier this week, elevating some issues in regard to her total stance towards digital belongings.
Nonetheless, Yellen’s written testimony left far more area for nuance, revealing a bit extra balanced method.
“I believe we have to look carefully at the right way to encourage their use for official actions whereas curbing their use for malign and unlawful actions. If confirmed, I intend to work carefully with the Federal Reserve Board and the opposite federal banking and securities regulators on the right way to implement an efficient regulatory framework for these and different fintech improvements,” she defined.
Yellen testimony far more consistent with what broader Treasury coverage has been on crypto since 2013…market overreacted….set off joyful bull market promoting…. https://t.co/2sbvjvAH2N
— Jeremy Allaire (@jerallaire) January 21, 2021
Concurrently, Yellen didn’t omit the truth that cryptocurrencies may very well be used for shady functions, stressing that respective companies ought to proceed to struggle all manners of unlawful monetary actions—together with crypto-related ones.
“On the identical time, we all know they can be utilized to finance terrorism, facilitate cash laundering, and assist malign actions that threaten U.S. nationwide safety pursuits and the integrity of the U.S. and worldwide monetary methods,” she added.
That is particularly vital for the crypto trade as a result of because the US Division of the Treasury Secretary, Yellen would additionally oversee the Monetary Crimes Enforcement Community (FinCEN), a bureau that goals to fight terrorism financing and cash laundering.
Lately, the FinCEN made fairly a couple of headlines by proposing a number of new crypto pockets rules that many privateness advocates and crypto specialists deemed onerous and rushed. Nonetheless, the Biden administration gave the crypto trade some respiration room yesterday by placing all “new or pending” regulatory guidelines on maintain.
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