Yellen Clarifies Her Stance On Crypto, Says Digital Assets Have “Potential”

Treasury Secretary Nominee Janet Yellen clarified her stance on crypto in a recent hearing, saying the technology had the potential to improve the current financial system.

On Jan. 19, 2021, Yellen expressed her negative outlook towards cryptocurrencies, saying they “are used at least in a [transactional] sense mainly for illicit finance.”

Despite this controversial statement, Yellen’s detailed response shows a much more nuanced understanding of the technology’s potential.

She wants to encourage the legitimate use of cryptocurrencies while curtailing the misuse of cryptocurrencies by bad-faith actors who use crypto nefariously. She also seeks to provide an effective regulatory framework for that purpose.

“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,” Yellen stated.

She stated that she wants to combat financial terrorism, money laundering, and other nefarious activities that threaten U.S. national security interests while encouraging legitimate use cases for crypto.

“I think it's important we consider the benefits of cryptocurrencies and other digital assets, and the potential they have to improve the efficiency of the financial system.” – Yellen

Maybe there's hope after all