Janet Yellen now says crypto has potential to ‘improve’ financial system. Treasury Nominee Janet Yellen now thinks that along with the potential for misuse, it is important that the U.S considers the benefits of cryptocurrencies.
The Treasury Secretary nominee said that while cryptocurrencies can be used to finance terrorism and other illicit activities, they also have the potential to “improve the efficiency of the financial system,” according to a written response to the Senate Finance Committee.
“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,” she wrote. “If confirmed, I intend to work closely with the Federal Reserve Board and the other federal banking and securities regulators on how to implement an effective regulatory framework for these and other fintech innovations.”
Her latest response seems to have diverged slightly from her initial verbal response to a question about potential crypto use in terrorist financing, asked by Sen. Maggie Hassan (D-N.H.). At the time, Yellen called crypto a concern, saying she believes many are being used “mainly for illicit financing.”