President Biden’s pick to lead the United States Treasury Department, Dr. Janet Yellen thinks crypto has the potential to enhance the financial system and wants to encourage its legitimate use-cases.
President Joe Biden has nominated Janet Yellen as Secretary of the Treasury, and while her comments on cryptocurrency last week appeared to be negative—the former Federal Reserve chair has revealed that she sees great potential in the nascent digital asset class.
Yellen initially said that the US needs to examine how it can curtail the use of crypto for illicit financing which she explained was its main use during her Senate confirmation hearing last week, She made the comments in response to a question from Sen.
Furthermore, such clarity will ultimately benefit Ripple and XRP that are in the midst of an SEC lawsuit claiming that Ripple carried out an unregistered securities offering.
Magic’s exact comments on President Biden’s picks can be found below.
With Gary Gensler heading the SEC, Janet Yellen heading the US Treasury, and former Ripple executive Michael Barr poised to lead the US OCC, there is clearly going to be a focus on sweeping crypto regulatory reform in the US, and I’m optimistic for Ripple and XRP.
US Treasury Nominee, Dr. Yellen, Clarifies Her Comments on Digital Assets
Earlier this week, the crypto-verse was shaken by comments of President Biden’s pick for the Treasury, Dr. Janet Yellen. In a CNBC interview, Dr. Yellen expressed concern that digital assets could be utilized in illicit activities.
However, in a January 21st statement, Dr.
Nominee yellen encourage for activities
The cryptocurrency industry is seemingly elated after the newly sworn-in US president Joe Biden has taken several pro-crypto steps on the first day at the office.
Now, Janet Yellen, the Treasury Secretary nominee, has noted that cryptocurrencies can benefit the US and its Allies like other technological developments.
Janet Allen Discusses Her Stance on Bitcoin and Digital Assets
US Treasury Secretary nominee Janet Yellen released a written testimony on Thursday this week talking about the benefits of cryptocurrencies and digital assets. She stated that the cryptocurrencies like Bitcoin could improve the overall efficiency of the financial systems. Bitcoin and other cryptocurrencies are offering global financial transactions.
Janet Yellen, President Obama’s nominee to become the next chairman of the Federal Reserve Board, is sworn in Thursday on Capitol Hill for her confirmation hearing. Jacquelyn Martin/APhide captiontoggle captionJacquelyn Martin/AP
Janet Yellen, President Obama’s nominee to become the next chairman of the Federal Reserve Board, is sworn in Thursday on Capitol Hill for her confirmation hearing.
Janet Yellen cleared a key hurdle Thursday, as her confirmation hearing to become the next chair of the Federal Reserve went smoothly.
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In her opening remarks to the Senate Finance Committee, Yellen said that she will push for a robust fiscal stimulus program to get the pandemic-stricken economy back on track. Yellen is an economist and served as chair of the Federal Reserve from 2014 to 2018.
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“Without further action, we risk a longer, more painful recession now — and long-term scarring of the economy later,” Yellen said in testimony prepared for her confirmation hearing Tuesday before the Senate Finance Committee.
In her opening remarks, Yellen said that the pandemic has caused widespread devastation.
We need to take on China’s abuse, illegal practices, its undercutting U.S. economies. They’ve been stealing intellectual property, engaging in practices including low labor and environmental standards.”
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On climate change, Yellen said that it represents one of the “most critical issues facing our country and the world and poses an existential threat.” She said that it will be the focus of the entire Biden administration.
“Biden is committed to a wide range of policies to address it, and in the process, creating good jobs for American workers. It’s important to make things in America. Electric vehicles both address climate change and create good jobs.
He will remain on the Board of Governors of the Federal Reserve System until his term expires in 2020.
If confirmed by the Senate, Yellen will become the first woman to head the Fed. She would begin a four-year term as chairman; her term on the Board of Governors would run for 14 years.
The New York Times, which live-blogged today’s hearing, clarifies the claim of distinction that Yellen could make if she is elevated to the chairmanship. Noting tweets that have called Yellen the world’s first female head of a central bank, the newspaper says that’s not so.
Yellen would certainly be the United States’ first female central banker, and one of the most powerful women to serve in American government,” The Times says. “But East Germany had a female central banker more than 50 years ago.
And there have been important lessons learned.”
Yellen noted that the Fed had revamped its supervisory practices, particularly in dealing with large banks.
“One of our top priorities now is ramping up our monitoring of the financial system as a whole, to detect financial stability risks,” she said. “I think that’s something that we weren’t doing in an adequate basis before the crisis. And so we missed some of the important linkages whereby problems in mortgages would rebound through the financial system.”
Warren closed her remarks by saying she hopes “very much” that Yellen is confirmed and that she would “help keep our financial system safe.”
President Obama nominated Yellen in October to fill the post that current Fed Chairman Ben Bernanke will vacate at the end of January.
Bernanke’s role at the Fed will not end when he steps down as chairman, though.
But right now, with interest rates at historic lows, the smartest thing we can do is act big. In the long run, I believe the benefits will far outweigh the costs, especially if we care about helping people who have been struggling for a very long time. People worry about a K-shaped recovery, but well before COVID-19 infected a single American, we were living in a K-shaped economy, one where wealth built on wealth while working families fell further and further behind.
This is especially true for people of color.”
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If the panel approves Yellen, the full Senate would vote on her confirmation.
Noting that Yellen “will eventually need five Republican votes for confirmation, because the reality of the modern Senate is that everything takes 60 votes,” The New York Times says that Republicans’ questions today suggests “those votes may not be so hard to round up.”
Much of the hearing centered on the Fed’s efforts to help the U.S. economy recover from the recent mortgage crisis. Republicans on the panel asked Yellen about the ongoing stimulus effort and whether it has helped the wealthy more than anyone else.
That view was put forth by Sen. Bob Corker, R-Tenn., who said that, “in many ways, easy money is an elitist policy.”
In her response, Yellen acknowledged that the policies have helped investors in the stock market.
The first way to judge is by looking at the two major numbers the Federal Reserve itself will be watching: unemployment and inflation. These numbers determine whether it is fulfilling its “dual mandate” of maximum employment and price stability.
Since the Great Recession started, the Fed has failed to meet its mandate. Everyone understands that unemployment, currently at 7.3 percent, is too high; but the core inflation rate, now 1.2 percent, has also been below where the Fed wants it.
Indeed, that rate has been falling in 2013 well below the 2 percent target. And even now, experts at the Fed are projecting that unemployment will be around 6.6 percent at the end of 2014, with inflation (excluding certain volatile prices) below target at 1.6 percent.