New U.S. Treasury Secretary Janet Yellen Clarifies Her Stance on Bitcoin, Gives Hope on Effective Crypto Regulation
January 24, 2021 9:47 PM
Janet Yellen who was picked by Joe Biden to become the new Treasury Secretary has come out to clarify her stance on cryptocurrencies and Bitcoin.
The new U.S secretary who previously stated during a senate hearing when we said Cryptocurrencies are mostly used for illicit financing. Janet Yellen clarified her position on the regulation of cryptocurrencies in a written testimony published on Thursday following the Senate hearing on her nomination as the Treasury Secretary.
Yellen made some statements regarding cryptocurrencies During the hearing which were heavily criticized as being inaccurate.
The finance committee began by briefly describing the benefits and risks of bitcoin and other cryptocurrencies. “Bitcoin and other digital and cryptocurrencies are providing financial transactions around the globe, like many technological developments, this offers potential benefits for the U.S., and our allies,” the written testimony reads. “At the same time, it also presents opportunities for states and non-state actors looking to circumvent the current financial system and undermine American interests. For example, the Central Bank of China just issued its first digital currency.”
“Dr. Yellen, what do you view as the potential threats and benefits these innovations and technologies will have on U.S. national security? Do you think more needs to be done to ensure we have appropriate safeguards and regulations for digital and cryptocurrencies in place?” the finance committee asked the Treasury Secretary nominee.
Yellen replied: “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.”
She continued, “At the same time, we know they can be used to finance terrorism, facilitate money laundering, and support malign activities that threaten U.S. national security interests and the integrity of the U.S. and international financial systems,” elaborating:
I think we need to look closely at how to encourage their use for legitimate activities while curtailing their use for malign and illegal activities.
“If confirmed, I intend to work closely with the Federal Reserve Board and the other federal banking and securities regulators on how to implement an effective regulatory framework for these and other fintech innovations,” Yellen concluded.
Yellen's clarification has softened her stance on cryptocurrencies but what the future hold in terms of U.S crypto regulations in largely unpredictable, if structured properly then blockchain companies will flourish again or if they fail it's going to be a mass exodus.