Janet Yellen, nominated for US President Joe Biden's Secretary of the Treasury, has been blamed by many for the recent drop in token prices after she voiced ''concerns'' about crypto. Now many will hope that more positive comments on the matter can help stop the worsening decline. Yellen has communicated with the Senate Finance Committee ahead of a vote, expected today, on her nomination.
And in a series of responses to committee member Senator Todd Young's question on the matter, Yellen wrote:
"I think it's important that we consider the benefits of cryptocurrencies and other digital assets and the potential they have to improve the efficiency of the financial system."
She immediately followed this up, but wrote:
"At the same time, we know that they can be used to fund terrorism, facilitate money laundering, and support malicious activities that threaten the national security interests of the United States and the integrity of the United States and international financial systems."
But then she went on in a more positive mindset, adding:
"I think we need to take a good look at how to encourage its use for legitimate activities and limit its use for malicious and illegal activities."
Yellen concluded by stating that she intends to ''work closely'' with the Federal Reserve board of directors and ''other federal banking and securities regulators'' on a plan to ''implement an effective regulatory framework for these and others. fintech innovations''.
Meanwhile, according to Young, bitcoin (BTC) "and other digital and cryptocurrencies provide financial transactions around the world", adding that "this offers potential benefits" for the United States and its allies.
Earlier this week, Yellen told the committee that "cryptocurrencies are a particular concern" in the fight against terrorist financing, adding that Washington ''needed to ensure that our methods of dealing with these matters change along with changing technology''. She added that ''one of her goals could be to limit the use of crypto by certain groups''.
