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Former Federal Reserve Chairman Janet Yellen, who was appointed Treasury Secretary of the US Joe Biden administration, suggested the possibility of establishing an effective regulatory framework for cryptocurrency.
On the 22nd (local time), CoinDesk, a cryptocurrency specialist, reported on the contents of the Q&A released by the US Senate Finance Committee.
On that day, the nominee of Ylan was asked,’Do you think digital currency-related technologies such as Bitcoin will be a threat to US national security?’
In response, Yellen submitted a written response to the Senate Finance Committee stating that “Measures to prevent cryptocurrency from being used for malicious or illegal activities should be carefully reviewed and encouraged to be used for legal activities.”
In addition, he replied, “It is important to consider the advantages of cryptocurrency and digital currency” to the question, “Do you think we should prepare appropriate protection regulations for cryptocurrency and digital currency?”
“Cryptocurrency may be a financing terrorist and other illegal activity, but there is also the potential to improve the efficiency of the financial system. Cryptocurrency-like technological innovations and effective regulatory frameworks for fintech technologies,” said Yellen. “We will work with the Federal Reserve Board and other federal banks and regulators to do so.”
In this regard, CoinDesk reported that “this written response is slightly different from what Yellon said at the hearing site on the 19th that’cryptocurrency is used as illegal terrorism fund’.”
Meanwhile, Jeremy Allaire, CEO of the stablecoin USDC issuer Circle, pointed out through his Twitter that “the cryptocurrency market is overreacting to the remarks of the US Treasury Secretary Janet Yellen.”
“In fact, Janet Yellen’s remarks are in line with the direction that the US Treasury Department has continued to apply new policies to cryptocurrencies since 2013. The market is overreacting and is triggering bull market selling.”