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


Janet Yellen, who was recently nominated by US President Joe Biden for the post of Treasury Secretary, said that it is “important to consider the benefits of cryptocurrencies,” according to her written testimony published today.

“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 said, replying to a question about potential threats and benefits of cryptocurrencies.

A more nuanced approach

As CryptoSlate reported, Yellen drew a direct parallel between illicit activity and cryptocurrencies during the US Senate Committee on Finance hearing earlier this week, raising some concerns in regard to her overall stance toward digital assets.

However, Yellen’s written testimony left much more space for nuance, revealing a bit more balanced approach.

“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,” she explained.

Simultaneously, Yellen didn’t omit the fact that cryptocurrencies could be used for shady purposes, stressing that respective agencies should continue to fight all manners of illegal financial activities—including crypto-related ones.

“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,” she added.

This is especially important for the crypto industry because as the US Department of the Treasury Secretary, Yellen would also oversee the Financial Crimes Enforcement Network (FinCEN), a bureau that aims to combat terrorism financing and money laundering.

Recently, the FinCEN made quite a few headlines by proposing several new crypto wallet regulations that many privacy advocates and crypto experts deemed onerous and rushed. However, the Biden administration gave the crypto industry some breathing room yesterday by putting all “new or pending” regulatory rules on hold.

Like what you see? Subscribe for daily updates.





Source link

Latest articles

Jack Dorsey’s Square has ‘no plans’ to purchase more Bitcoin ‘at this point’

Digital payments company Square, led by Twitter CEO Jack Dorsey, decided to hit the brakes—at least for the time being—on Bitcoin...

Bitfinex hacker will need 114 years to launder $7 billion worth of stolen Bitcoin

Only 4% of nearly 120,000 Bitcoin (around $7 billion today) stolen by a hacker from crypto exchange Bitfinex in 2016 have...

This firm turned an old power plant into Bitcoin farm—and mined $60 million in a year

Over the past few years, private equity firm Atlas Holdings has created arguably the most ambitious and self-sufficient Bitcoin mining facility...

Mark Cuban reaffirms Bitcoin plans after Tesla snub sparks concerns

Billionaire ‘Shark Tank’ star Mark Cuban said today that Dallas Mavericks, the Cuban-owned NBA basketball team, will continue to accept Bitcoin...

Related articles

Leave a reply

Please enter your comment!
Please enter your name here