Key Takeaways

  • Janet Yellen states that cryptocurrencies have the potential to improve the financial system.
  • She wants to curtail illegal activities whilst encouraging legitimate activities.
  • She plans on creating an effective regulatory framework for cryptocurrencies.

Share this article

Treasury Secretary Nominee Janet Yellen clarified her stance on crypto in a recent hearing, saying the technology had the potential to improve the current financial system.

Yellen Acknowledges the Potential of Crypto

On Jan. 19, 2021, Yellen expressed her negative outlook towards cryptocurrencies, saying they “are used at least in a [transactional] sense mainly for illicit finance.”

Despite this controversial statement, Yellen’s detailed response shows a much more nuanced understanding of the technology’s potential.

She wants to encourage the legitimate use of cryptocurrencies while curtailing the misuse of cryptocurrencies by bad-faith actors who use crypto nefariously. She also seeks to provide an effective regulatory framework for that purpose.

“I think it important we consider the benefits of cryptocurrencies and other digital assets, and the potential they have to improve the efficiency of the financial system,” Yellen stated.

She stated that she wants to combat financial terrorism, money laundering, and other nefarious activities that threaten U.S. national security interests while encouraging legitimate use cases for crypto.

Yellen intends on working with the Federal Reserve Board and other regulators to implement an effective regulatory framework for cryptocurrencies and other fintech innovations.

Overall, the steps Yellen has outlined will provide more certainty and help legitimize cryptocurrencies as a whole. Moreover, the regulatory framework that she plans to create will help bolster investors’ confidence, especially institutional investors.

Steven Mnuchin was the Treasury Secretary before Yellen. FinCEN introduced the controversial crypto wallet rule under his leadership to limit anonymity in the crypto space. However, since the Biden administration took over, that rule has been put on hold.

The Senate Finance Committee is expected to vote on Yellen’s nomination on Friday morning.

Share this article

69 COMMENTS

  1. This design is incredible! You most certainly know how to keep a reader amused. Between your wit and your videos, I was almost moved to start my own blog (well, almost…HaHa!) Fantastic job. I really enjoyed what you had to say, and more than that, how you presented it. Too cool!|

  2. Thank you for the good writeup. It in fact was a amusement account it. Look advanced to far added agreeable from you! However, how can we communicate?|

  3. Hmm it looks like your site ate my first comment (it was extremely long) so I guess I’ll just sum it up what I had written and say, I’m thoroughly enjoying your blog. I as well am an aspiring blog writer but I’m still new to the whole thing. Do you have any suggestions for first-time blog writers? I’d certainly appreciate it.|

  4. Definitely consider that which you stated. Your favourite reason seemed to be on the net the easiest factor to take into accout of. I say to you, I certainly get annoyed whilst other folks think about worries that they plainly do not realize about. You managed to hit the nail upon the highest and outlined out the entire thing with no need side-effects , people could take a signal. Will likely be again to get more. Thanks|

  5. Write more, thats all I have to say. Literally, it seems as though you relied on the video to make your point. You definitely know what youre talking about, why waste your intelligence on just posting videos to your site when you could be giving us something informative to read?|

LEAVE A REPLY

Please enter your comment!
Please enter your name here