Janet Yellen, an American economist serving as the 78th US Treasury Secretary, has repeatedly defended her anti-crypto views. During her 20-month tenure, she argued that bitcoin was not suitable for financial transactions and that people shouldn’t rely on digital assets in retirement.
Recent reports suggested that Yellen might leave her position after the midterms in November. It is not clear if her successor will be more open or continue with the same adverse policy.
The Crypto Negativism of the Past Few Years
Janet Yellen is a US official with rich experience. Former President Bill Clinton appointed her to the Federal Reserve Board of Governors in 1994. She resigned three years later to become the Chair of Council of Economic Advisers.
In 2004, Yellen was elected President of the Federal Reserve of San Francisco. This made her the first woman to hold this position in American history. She was elected Vice Chair of Federal Reserve Board of Governors in 2010, and later became Chair of the central bank.
Yellen stayed out of politics during Donald Trump’s presidency. She gave lectures in the United States and abroad between 2017 and 2021 and strongly criticized Trump’s administration.
However, Joe Biden’s election as President of the USA changed the tides and Yellen was re-elected to the White House as Secretary of Treasury.
She has been quiet about cryptocurrency over the years, except for the past two years. Soon after she was promoted to her current position, the economist stated that bitcoin is an inefficient and highly speculative asset that criminals frequently use in their illegal operations.
Yellen gave her first speech entirely devoted to cryptocurrency a few months later. She maintained her belief that these coins pose a threat to financial systems and that regulators should have comprehensive rules for the sector.
Contrary to bitcoin, and other coins, the Secretary for Treasury stated that a possible launch of a digital currency could be beneficial to the country and its national currencies.
Retire Crypto from Retirement Plans
Yellen’s negative tone about digital currencies reached its peak in the summer, when she advised people that adding crypto to retirement plans was not a good idea.
It’s not something I recommend to anyone who is saving for retirement. It’s a risky investment.
Janet Yellen, Source: Forbes
Yellen, however, has shown some acceptance of the cryptocurrency market. She stated that digital assets offer benefits that the authorities should explore days before she was nominated as US Secretary of Treasury. Even more, the economist stated that blockchain technology could “improve efficiency of the financial sector.”
Her Influence on Crypto Development
It is worth looking at how these changes might affect the cryptocurrency industry, following reports that Yellen may resign.
Since she is the principal advisor on economic issues, the US Secretary of Treasury can have a direct impact on President Obama. Yellen also oversees the Ministry of Economy and Finance. This means that any fiscal, taxation and printing policies must be approved before they can go live.
One reason why the US government has been so reticent about crypto is because of her negative vision. It remains to be seen what her successor would do with the sector, even if one is coming soon.
It is safe to say that the impact on the cryptocurrency industry would be significant given the importance of the position. Yellen could continue to hold that position or if a successor is in place. The US is still the largest economy in the world and the leader in crypto adoption.
We’ve seen the impact of the Fed’s monetary policies and the SEC’s actions (in Ripple’s case or in refusing to approve a spot Bitcoin ETF) on the industry. The industry has been brought under the authority of the Biden administration with potential regulatory plans and executive orders.
It could be very beneficial to have a Secretary for Treasury who is more open-minded about crypto, and vice versa.
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CryptoPotato’s first article, Janet Yellen’s Reign As US Treasury Secretary: Her Impact On Crypto appeared first on CryptoPotato.
Marla Brooks – Financial Analysis
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