U.S. Treasury Secretary nominee Janet Yellen acknowledges potential advantages of crypto

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 line with her written testimony revealed at present.

“I believe it vital 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 stated, 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 total stance towards digital belongings.

Nonetheless, Yellen’s written testimony left far more area for nuance, revealing a bit extra balanced strategy.

“I believe we have to look carefully at the best way to encourage their use for professional 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 best way to implement an efficient regulatory framework for these and different fintech improvements,” she defined.

Yellen testimony far more in keeping with what broader Treasury coverage has been on crypto since 2013…market overreacted….set off blissful 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 similar 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 programs,” she added.

That is particularly vital 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 a couple of headlines by proposing a number of new crypto pockets rules that many privateness advocates and crypto consultants 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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