Janet Yellen was officially named the 78th Secretary of the U.S. Treasury on January 25, 2021.
The Senate voted 84–15 in favor of Yellen, making her the first woman to hold the post.
Yellen has so far maintained a favorable, but cautious view of the cryptocurrency industry
The new President of the US Treasury, Janet Yellen, is now responsible for regulating cryptocurrencies … without stifling innovation, we hope.
Following her position as president of the fed, Janet Yellen obtained the approval of the United States Senate to become Secretary of the Treasury on January 25, 2021, making her the first woman to hold this position. Yellen succeeds Steven Mnuchin, a former investment banker who rose to prominence as a Wall Street investment banker.
As the former president of the fed in 2017, Yellen spoke a lot about the advantages and disadvantages of cryptocurrencies. At the time, it displayed some skepticism about Bitcoin , calling it a “highly speculative asset”. Asked about possible regulation, Yellen simply said the Federal Reserve had little interest or ability to do so.
More recently, the former president of the fed expressed her interest in an environment conducive to innovation, while still having regulatory oversight. However, she has given mixed reviews on the subject so far.
On the one hand, the Secretary of the Treasury said that cryptocurrencies are mainly used for illicit financing. However, she also advocated for the responsible and legitimate use of digital currencies. A legal framework is also coming under his leadership, according to a 114-page response sent to the Senate Finance Committee.
The document also included Yellen’s comments on opportunities for the United States in digital assets. China’s future digital yuan currency , for example, could force the administration to make sweeping changes to the way international transactions are monitored and processed.
New identification rules for crypto-currencies
It remains to be seen how the Treasury reacts to the boom in cryptocurrencies under Yellen’s watch. Over the past few years, the Treasury has become increasingly hostile against cryptocurrencies. In 2019, former secretary Steven Mnuchin warned he was “going to make sure” Bitcoin doesn’t turn into the equivalent of Swiss bank accounts – an anonymous transaction paradise.
Then, only a few months ago, Mnuchin hastened to offer a new cryptocurrency identification solution. This would force users to associate their identity with independent wallets. Under such a rule, users holding cryptocurrency in offline wallets would no longer be able to transact anonymously and privately.