Cryptocurrency

Janet Yellen Confusing Stance on Cryptocurrency Creates Mixed Feelings 

Janet Yellen Confusing Stance on Cryptocurrency Creates Mixed Feelings

Janet Yellen, the new Treasury Secretary of the United States, response to Senator Maggie Hassan question on cryptocurrency being used by terrorists and criminals has created mixed feelings across the crypto space.

Before the Senate Finance Committee, Yellen said “Cryptocurrencies are a particular concern. I think many are used—at least in a transactions sense—mainly for illicit financing.”

She further stated that she wanted to “examine ways in which we can curtail their use and make sure that [money laundering] doesn’t occur through those channels.

Yellen’s response plunged Bitcoin and other cryptocurrencies as investors interpreted it as ‘Biden administration going after cryptocurrency holders’.

Janet Yellen later clarified her response following the huge media coverage her response got and the resulting negative impact on the price of Bitcoin and other cryptocurrencies.

In the written testimony, the finance committee later asked her “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. 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?” 

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.

In December, the Securities and Exchange Commission (SEC) filed a lawsuit against the world’s third most capitalised cryptocurrency, Ripple (XRP) to change its operation as currency.

The uncertainty surrounding what the new administration might do to regulate the crypto space continues to weigh on the cryptocurrencies.

Samed Olukoya

Is the CEO and Founder of Investors King Limited. He is a seasoned foreign exchange research analyst and a published author on Yahoo Finance, Business Insider, Nasdaq, Entrepreneur.com, Investorplace, and other prominent platforms. With over two decades of experience in global financial markets, Olukoya is well-recognized in the industry.

Share
Published by
Samed Olukoya

Recent Posts

Discordant Tunes Greet 50% Tariff Hike As Subscribers Threaten To Sue NCC

Nigerians have expressed displeasure over the decision of the Nigerian Communications Commission to increase tariffs…

1 hour ago

Beatrice Ekweremadu Returns to Nigeria After Serving Sentence in UK

Mrs. Beatrice Ekweremadu, wife of former Deputy Senate President Senator Ike Ekweremadu, has reportedly returned…

1 hour ago

Nigeria Expands Refining Capacity with MRO Energy’s Delta State Refinery

The Federal Government has taken another step toward boosting Nigeria’s refining capacity with the approval…

2 hours ago

Eko DisCo Set for Transformation as Transgrid Enerco Signs Historic 60% Acquisition Agreement

Transgrid Enerco Limited has signed a Share Purchase Agreement (SPA) to acquire a 60% equity…

2 hours ago

Metering Gap Exceeds 7 Million Despite Multilateral Loans and Government Funds

Despite interventions by the Federal Government and multilateral lenders amounting to over N1.5 trillion, Nigeria’s…

3 hours ago

Petrol Prices Surge to N990 in Abuja, N960 in Lagos as Oil Tops $80 Per Barrel

The Nigerian National Petroleum Company Limited (NNPC) has increased the pump price of petrol at…

4 hours ago