- President Biden’s nominee for Treasury Secretary, Janet Yellen, mentioned in oral testimony Tuesday that cryptocurrency crime was of “specific concern.”
- Her written testimony is extra even-handed about digital belongings’ advantages and downsides.
- As Treasury Secretary, Yellen would have purview over the Monetary Crimes Enforcement Community.
Janet Yellen has extra to say about cryptocurrency.
Throughout her Senate affirmation listening to on January 19, President Biden’s nominee for Treasury Secretary mentioned “cryptocurrencies are of specific concern” on the subject of facilitating crime, together with terrorist exercise.
In written testimony launched at the moment, nevertheless, Yellen struck a extra measured observe, noting their “potential” to enhance the monetary system.
Yellen’s oral remarks on Tuesday got here in response to a query from Democratic Senator Maggie Hassan about some cryptocurrencies getting used to fund terrorism. Hassan requested, “Are you able to define a few of these rising technological issues and the way Treasury ought to fight new types of terrorism felony financing?”
In different phrases, it was a slender query. Furthermore, Yellen’s response—partly, that “we actually want to look at methods wherein we will curtail their use”—was confined to the top of the 5 minutes allotted to Sen. Hassan for questions.
The written testimony gave Yellen an opportunity to extra absolutely categorical her views. The query submitted by the Senate Committee on Finance requested: “Dr. Yellen, what do you view because the potential threats and advantages these improvements and applied sciences may have on U.S. nationwide safety? Do you assume extra must be executed to make sure we have now acceptable safeguards and rules for digital and cryptocurrencies in place?”
“I feel it essential we contemplate the advantages of cryptocurrencies and different digital belongings, and the potential they’ve to enhance the effectivity of the monetary system.”
After noting that digital belongings can be used for terrorism and cash laundering, she continued:
“I feel we have to look carefully at the best way to encourage their use for legit actions whereas curbing their use for malign and unlawful actions. If confirmed, I intend to work carefully with the Federal Reserve Board and the opposite federal banking and securities regulators on the best way to implement an efficient regulatory framework for these and different fintech improvements.”
Yellen is already intimately aware of the Federal Reserve Board. She chaired it from 2014 to 2018.
As Treasury Secretary, Yellen would have purview over the Monetary Crimes Enforcement Community (FinCEN), a Treasury bureau that combats cash laundering and terrorism.
FinCEN, below Trump-era Treasury Secretary Steve Mnuchin, proposed new rules for reporting transactions to non-public crypto wallets that may absolutely topic digital currencies to the Financial institution Secrecy Act. Transactions of greater than $3,000 must be recorded, whereas these totalling greater than $10,000 in a 24-hour interval must be reported to FinCEN. President Biden yesterday put a freeze on all federal rulemaking, which means the FinCEN proposal will first be reviewed by Biden appointees, i.e., Yellen and her designated FinCEN chair.
The Senate Finance Committee is predicted to vote on Yellen’s nomination Friday morning, after which it goes to the total chamber for a vote.