- President Biden’s nominee for Treasury Secretary, Janet Yellen, mentioned in oral testimony Tuesday that cryptocurrency crime was of “explicit concern.”
- Her written testimony is extra even-handed about digital property’ 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 explicit concern” in terms of facilitating crime, together with terrorist exercise.
In written testimony launched right now, nonetheless, Yellen struck a extra measured notice, 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 considerations and the way Treasury ought to fight new types of terrorism prison financing?”
In different phrases, it was a slender query. Furthermore, Yellen’s response—partially, that “we actually want to look at methods through which we are able to curtail their use”—was confined to the tip of the 5 minutes allotted to Sen. Hassan for questions.
The written testimony gave Yellen an opportunity to extra totally specific 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 accomplished to make sure we’ve got acceptable safeguards and rules for digital and cryptocurrencies in place?”
“I believe it essential we take into account the advantages of cryptocurrencies and different digital property, and the potential they’ve to enhance the effectivity of the monetary system.”
After noting that digital property can be used for terrorism and cash laundering, she continued:
“I believe we have to look intently at the way to encourage their use for reputable actions whereas curbing their use for malign and unlawful actions. If confirmed, I intend to work intently with the Federal Reserve Board and the opposite federal banking and securities regulators on the way to implement an efficient regulatory framework for these and different fintech improvements.”
Yellen is already intimately acquainted with 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, underneath Trump-era Treasury Secretary Steve Mnuchin, proposed new rules for reporting transactions to non-public crypto wallets that might totally 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 complete chamber for a vote.