After months of rumors concerning the former head of Reserve’s nomination by Biden, the Senate finally confirms their approval of the candidate. Biden’s choice worries numerous players in the crypto space because Yellen had previously voiced her lack of interest in the cryptocurrency venture, which could mean stringent laws for the sector.
Although nothing is official concerning the rules, Yellen had informed the Senate during her interview that she would work with other federal agencies like the SEC and FinCEN to create an applicable regulation that would guide the usage of the asset. Fortunately, Biden has other picks who have shown interest in cryptos. In contrast, some others have worked under crypto-related firms, meaning that the administration might promote digital asset usage somehow.
US Senate approves Janet Yellen as treasury secretary
The Senate finally takes their stance on Joe Biden’s pick for treasury secretary as the body took an 84-15 vote. What led to the space’s primary concern is Yellen’s public announcement that she didn’t see Bitcoin’s use.
Around the time she made that statement, she worked as the head of Federal Reserve for Obama’s administration. Like many people see Bitcoin, the treasury secretary said that Bitcoin was a speculative asset a few years ago. Now, times are changing, and people believe that Yellen’s opinion should change too.
Yellen revealed last week that cryptocurrencies are an easy instrument for terrorism financing, and the platform needed a stable regulatory framework to work on. She opined that most people that use the medium use it because of their illicit purposes.
Yellen suggested that the government has to curtail the platform’s use to prevent money laundering incidences, meaning that the privacy future that users previously enjoyed might be history. Despite her criticism for the digital asset, she also praised the asset and explained that the traditional financial system could benefit from it. Looking at Yellen’s opinion, it seems she is now open-minded about the industry while still trying to curb its criminal activity usage.
Yellen opines that cryptos could improve the financial system
For years now, people see cryptocurrencies as the future of money, so it’s not surprising that the secretary could suggest that it would improve the current system. She said that the government has to look for ways to encourage the medium for legitimate uses while still keeping it in mind to control criminals from taking advantage of the platform.
Yellen revealed that her position as Treasury secretary would allow her to work with other regulatory players to create an efficient regulatory framework that will not discourage the crypto community. Additionally, she once worked in the Reserve sector, so she understands the need for certain moves in line with its anti-money laundering act.
The bodies Yellen would work with will be the OCC (Office of the comptroller of the currency), which regulates bank activities. She would work with SEC (Securities and Exchange Commission), works closer with crypto providers and exchanges, and FinCEN, which Trump’s administration already set up a proposed sector regulation.