It is indeed true that the recent growth in adoption for Bitcoin has been compelling regulators and high ranking officials to change their tune about the flagship cryptocurrency. One such personality seems to be President Joe Biden’s pick for Treasury Secretary Janet Yellen, who recently made the headlines after she linked cryptocurrencies to terrorist financing and money laundering.
As previously reported by The Daily Chain, Speaking at her virtual confirmation hearing before the U.S. Senate, Yellen answered to Democratic Senator Maggie Hassan’s question about how she would respond to “emerging financial technology” being used to fund criminal organizations and terrorists.
In her response, she described cryptocurrencies as a “growing concern” in the U.S., adding that the technology was used “mainly for illicit financing” for terrorist groups. She also asserted that U.S. regulators need to look at ways to “curtail” the use of crypto as part of their anti-money laundering efforts.
Empower Legal use of Crypto
However, in her written statement published on the Senate Finance Committee website today, Yellen seems to be a lot more open minded than what was perceived before. Even though Yellen continues to stress the fact that regulators must curtail the use of crypto for “malign and illegal activities,” she does add that she has plans to encourage the use of digital assets for “legitimate activities.”
Her statement reads:
“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 added that she envisions a future where the United States is a “leader in the digital asset and financial technology areas.” She would also like to help develop a regulatory framework for cryptocurrency “and other fintech innovations” by working alongside the Federal Reserve Board.
Yellen has formerly served as the chair of the Federal Reserve under the administration of U.S. President Barack Obama, and hasn’t been to outspoken about her views regarding the cryptocurrency space. However, she has previously described Bitcoin as “anything but useful.”
Following the Senate Finance Committee’s vote on her nomination, if Yellen is approved, she will be the first woman to serve as the Treasury Secretary.