Janet Yellen, who was lately nominated by US President Joe Biden for the put up of Treasury Secretary, mentioned that it’s “necessary to contemplate the advantages of cryptocurrencies,” based on her written testimony revealed immediately.
“I feel it necessary we take into account the advantages of cryptocurrencies and different digital belongings, 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 through the US Senate Committee on Finance listening to earlier this week, elevating some considerations in regard to her general stance towards digital belongings.
Nonetheless, Yellen’s written testimony left way more house 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 way 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 could possibly 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 methods,” she added.
That is particularly necessary 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.
Lately, the FinCEN made fairly just a few headlines by proposing a number of new crypto pockets laws that many privateness advocates and crypto specialists deemed onerous and rushed. Nonetheless, 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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