Janet Yellen, who was not too long ago nominated by US President Joe Biden for the put up of Treasury Secretary, mentioned that it’s “essential to contemplate the advantages of cryptocurrencies,” based on her written testimony revealed at this time.
“I feel it essential we think about the advantages of cryptocurrencies and different digital property, and the potential they’ve to enhance the effectivity of the monetary system,” she mentioned, replying to a query about potential threats and advantages of cryptocurrencies.
A extra nuanced strategy
As CryptoSlate reported, Yellen drew a direct parallel between illicit exercise and cryptocurrencies in the course of the US Senate Committee on Finance listening to earlier this week, elevating some considerations in regard to her general stance towards digital property.
Nevertheless, Yellen’s written testimony left far more area for nuance, revealing a bit extra balanced strategy.
“I feel we have to look carefully at the right way to encourage their use for legit 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 might be used for shady functions, stressing that respective companies ought to proceed to combat 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 help malign actions that threaten U.S. nationwide safety pursuits and the integrity of the U.S. and worldwide monetary techniques,” she added.
That is particularly essential for the crypto business 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.
Not too long ago, the FinCEN made fairly just a few headlines by proposing a number of new crypto pockets laws that many privateness advocates and crypto consultants deemed onerous and rushed. Nevertheless, the Biden administration gave the crypto business some respiration room yesterday by placing all “new or pending” regulatory guidelines on maintain.
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