nominee yellen encourage for activities

Yellen clarified that digital assets could also improve the financial system. Her exact comments were as follows.

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.

At the same time, we know they can be used to finance terrorism, facilitate money laundering, and support malign activities that threaten U.S. national security interests and the integrity of the U.S. and international financial systems.

I think we need to look closely at how to encourage their use for legitimate activities while curtailing their use for malign and illegal activities.


The damage has been sweeping, and as the president-elect said last Thursday, our response must be, too. Over the next few months, we are going to need more aid to distribute the vaccine; to reopen schools; to help states keep firefighters and teachers on the job.
We’ll need more funding to make sure unemployment insurance checks still go out; and to help families who are at risk of going hungry or losing the roof over their heads.”

See: Biden Presidency Could Bring $1.9 Trillion Stimulus Plan, Increased Minimum Wage and More Cash for AmericansFind: 59% of Americans Say They Will Use Their Stimulus Money for This Necessity

During her testimony, in regards to China, Yellen said: “China is our most important strategic competitor, we need to work with our allies and strengthen our own economy so we can compete.

Nominee yellen encourage for activities

Most recently, the Lawsuit filed against Ripple Inc for selling XRP as unregistered security in the country has grabbed many eyeballs. Ripple Labs has openly called out for the lack of transparency and clarity in the country for the regulation of digital assets.

While Janet Yellen discussed the potential benefits and revolutionary role of Bitcoin and digital assets in transforming the global financial system, she also highlighted the potential threat and underlying illicit usage.

Just a week ago, Janet Allen had showcased her concerns over the use of digital assets for illegal activities. The crypto supporters did not receive her comments well and criticized her for her views.
However, her fresh stance regarding the potential of Bitcoin offers some respite for sure.

Disclaimer

The information discussed by The Coin Magazine is not financial advice.

Quick take:

  • MagicPoopCannon believes Biden’s picks for the US Treasury, SEC and OCC will provide the regulatory clarity needed in the United States regarding digital assets
  • Magic is optimistic that both Ripple and XRP will benefit from such clarity
  • US Treasury Nominee, Dr. Janet Yellen, recently clarified her comments regarding digital assets
  • Dr.
    Yellen pointed out that cryptocurrencies can be used to improve the current financial system

Popular Bitcoin and Crypto analyst, MagicPoopCannon, is optimistic that President Biden’s picks for the US Treasury, the SEC and OCC, will provide the much needed regulatory clarity in the United States.

I personally think we need a new Dodd-Frank.”

While statements like that may set up a potential clash with Wall Street if she is confirmed for the Treasury post, Yellen — a former Fed chair — is no enemy of finance. Still, those comments, as well as her record as a bank regulator, help explain why many Democrats are confident she won’t be beholden to financial interests.

“People from the public and private sectors seek her wisdom and trust her expertise because of her transparency and in-depth knowledge of the issues,” Sen.

Sherrod Brown (D-Ohio), one of Wall Street’s toughest critics in Congress who is poised to chair the Banking Committee, told POLITICO.

I think many are used at least in a transaction sense mainly for illicit financing and I think we really need to examine ways in which we can curtail their use and make sure that anti-money laundering doesn’t occur through those channels. Yellen is yet to be confirmed as the new Secretary of the Treasury.
However, Bloomberg reports that confirmation could come as early as Thursday. If confirmed, Yellen would become the first woman to serve in such a capacity and will be replacing Steve Mnuchin.

Meanwhile, crypto-savvy Gary Gensler has been nominated to replace Elad Roisman as the new chairman of SEC.

Overall, Yellen’s rather myopic views on digital assets could pave the way for more stringent regulations in the U.S.

We’ve saved a video clip of that exchange on C-SPAN’s website.

“The truth is, if the regulators had done their jobs and reined in the banks, we wouldn’t need to be talking about quantitative easing,” Warren said, “because we could have avoided the 2008 crisis altogether.”

Warren went on to say she sees an imbalance in how the Fed handles its monetary and regulatory roles, with the former getting top priority at the expense of the latter.

She finished by asking Yellen, “Do you think that the Fed’s lack of attention to regulatory and supervisory responsibilities helped lead to the crash of 2008?”

For a few seconds, the only sound in the chamber was the clicking of cameras. Then Yellen began her response, in which she stumbled a bit at first.

“You know, I think in the aftermath of the crisis, we’ve gone back and tried to look carefully at what we …

She said that it is important to consider the various aspects of cryptocurrencies, including the apparent use in money laundering, finance terrorisms, and funding anti-American activities that threatened national security.

Yellen said that it is imperative to closely monitor the use of cryptocurrencies and chalk out a way through which the system can encourage the use of cryptocurrency for ‘legitimate activities’ and stop the use for the illegal or maligning activities that pose a hazard to national security. She also said that if confirmed, she would be willing to work with the Federal Reserve Board and other authorities to develop a regulatory framework for digital assets and cryptocurrency.

It is worth noting that there has been quite a furor in the US cryptocurrency community regarding the clarity of cryptocurrency regulations.

Warren “doesn’t think she should have given these speeches, but based on the balance of Yellen’s record of standing up to the big financial institutions, she is supporting her nomination.”

Hedge funds are among the big financial institutions that Yellen has dealt with in her remarks.

In remarks at the June Brookings event, she said financial market stress in March showed that the risks posed by hedge funds’ debt-fueled investments “were very real and serious,” though she did not directly characterize them as responsible for the market seize up. Current regulators have said they would like more information on this front.

The Managed Funds Association, which represents hedge funds, said such firms “weathered the March market turmoil without posing systemic risk to the financial system” but added that they support looking into reforms to the structure of U.S.

Citadel, a hedge fund that is also affiliated with a broker-dealer, for four different commitments in 2019 and 2020, as well as another paid event in 2018, for which the amount is not disclosed because it didn’t fall within the reporting period. She received roughly $1 million from Citigroup, one of the country’s biggest banks, for nine different speaking events.

She spoke to other big companies, like Bank of America, Goldman Sachs, Credit Suisse, PIMCO, Google and Salesforce.

Many of the talks focused on her views of the economy, where the risks might lie, how the Fed might respond to those dynamics, and commentary on longer-term problems.

“I see the main driver for the trade war to be economic,” she said at a CEO summit hosted by ING, according to a highlight video posted by the company, which paid her $225,000, according to the disclosure.

According to Treasury secretary nominee and the former Federal Reserve chair, Janet Yellen, cryptocurrencies are a “particular concern” when it comes to terrorist financing and money laundering. The incoming head believes that most digital assets are used for illicit financing.

Yellen voiced her opinion during her Senate confirmation hearing today.
Responding to a question from Senator Maggie Hassan on how to tackle threats relating to terrorist financing and the Treasury’s role in keeping a check on illegal financial activities, Yellen said:

We need to make sure that our methods for dealing with these matters — with terrorist financing — change along with changing technology […] Cryptocurrencies are a particular concern.

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