President-elect Joe Biden recently brought Janet Yellen’s name into play as Secretary of the Treasury
Yellen’s nomination to the Cabinet is pending 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 face the task of preventing the collapse of the US economic recovery.
Beyond her “domestic duties”, her position also gives her some influence on the cryptoverse. So it’s only fair to review your stance on digital assets.
Yellen, a “money dove,” has spoken out both for and against digital assets in her previous remarks. Their opinions and personal statements about Bitcoin are mostly mixed. Back in July 2015, when she was chair of the Federal Reserve, Yellen faced the U.S. Financial Services Committee, which was chaired by the committee’s vice chair and Bitcoin advocate Rep. Mick Mulvaney. The committee handed Yellen questions about Bitcoin regulation and its growing popularity.
Yellen’s response seemed to promote responsible regulation of digital assets.
„The costs and benefits of developing new laws or regulations relating to digital currencies should be carefully considered. New Rules […] could help 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 need 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 related to crime. Speaking at the Montreal Fintech Forum, she stated that the Bitcoin will be used to facilitate money laundering and financing terrorist activities. Yellen said that she is not a Bitcoin Fan. The appointed finance minister also claimed that the Bitcoin is not a store of wealth 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.
