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Janet Yellen turns back on previous crypto comments

Photo of: Nathan VDH
by Nathan VDH
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If the future director of the US Treasury is concerned about the illicit use of cryptocurrencies, her analysis is not limited to negative aspects. Janet Yellen adds that crypto and digital assets could improve the efficiency of the financial system.

The first statements of the very likely Secretary of the Treasury Janet Yellen did not go unnoticed in the crypto-sphere. To say the least. And these statements give rise to fears of tighter regulation.

During her Senate hearing, Yellen felt that cryptocurrencies were a “growing concern” in the United States. He also pointed to their use “mainly for the illicit financing” of terrorist and criminal activities.

The representative of the Biden administration therefore deems it necessary to examine ways to “reduce” the use of crypto as part of the fight against money laundering. But the Treasury Secretary’s point of view is not limited to these aspects.

According to Cointelegraph, the reading of her written statement suggests a more nuanced vision of the political leader with regard to crypto-actives. Certainly, she advocates fighting against their use for the benefit of “malicious and illegal activities”.

At the same time, however, it plans to encourage the use of these digital assets for “legitimate” purposes. “And to continue. “I think it’s significant that we consider the benefits of cryptocurrencies and other digital assets, and their potential to improve the efficiency of the financial system. »

The stakes are indeed competitive. Through the development of digital finance, the aim is to establish the domination of the United States in this sector. Janet Yellen believes that the country must be “a leader in the fields of digital assets and financial technologies. »

To achieve this, however, changes in regulation would be necessary. The Secretary of the Treasury announces the development of a regulatory framework for cryptocurrencies and other fintech innovations.

The return of KYC rules on transactions to private wallets is therefore not to be excluded. For the time being, this regulation is on hold for 60 days. But like France, the United States could reinforce identity controls on cryptocurrencies transactions.

“We fought hard and won the right to catch our breath and start over. Janet Yellen is not Steve Mnuchin. I’m optimistic,” said Compound Finance General Counsel Jake Chervinsky. Maybe a little early?