By 
President-elect Joe Biden recently put Janet Yellen’s name on the line as Treasury Secretary
Yellen’s nomination for the Cabinet is still pending and awaiting confirmation by the Senate. She served as Vice Chair of the Federal Reserve from 2010 to 2014 and later as Chair from 2014 to 2018. The Keynesian economist will be faced with the task of preventing the collapse of the US economic recovery.
Beyond her “domestic duties”, her position also gives her a certain influence on the cryptoverse. So it is only fair to check your attitude to digital assets.
Yellen, a “money pigeon,” has spoken out in her earlier remarks both for and against digital assets. Their opinions and personal statements about Bitcoin are mostly mixed. Back in July 2015, when she was chairman of the Federal Reserve, Yellen was a member of the U.S. Committee on Financial Services, which was chaired by Committee Vice Chairman and Bitcoin advocate Rep. Mick Mulvaney. The committee handed Yellen questions about Bitcoin regulation and its increasing popularity.
Yellen’s response seemed to promote responsible regulation of digital assets.
„The costs and benefits of developing new laws or regulations regarding digital currencies should be carefully considered. New regulations […] could help to strengthen the soundness of virtual currency systems and increase public confidence in the products, as some may not invest in or use digital currencies due to perceived legal uncertainty and/or lack of consumer protection.“ she said. “On the other hand, new regulation would have to be flexible enough to effectively address the evolving nature of digital currency systems and technologies and not hinder innovation.“
However, in 2018, the Democratic candidate claimed that many Bitcoin transactions are associated with crime. Speaking at the Montreal Fintech Forum, she explained that Bitcoin is used to facilitate money laundering and the financing of terrorist activities. Yellen went on to explain, she is not a Bitcoin “fan”. The appointed finance minister also claimed that the Bitcoin is not an asset store or a good payment option.
It’s hard to think of Yellen as a friend of the crypto space. However, due to their mixed record, the crypto community could still see regulations that do not hinder innovation.
Comments