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Yellen Leaks Biden Crypto Regulation Plan and Markets React

Yellen Leaks Biden Crypto Regulation Plan and Markets React.
| CryptoPress
 | Last updated: March 9, 2022
| CryptoPress
Last updated: March 9, 2022

CryptoPress

Bitcoin ($BTC) is trading around $42,000, up about 8.3 percent in the previous 24 hours.

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Many people were surprised to find out that Janet Yellen, the Treasury Secretary, accidentally posted a statement that she didn’t want anyone to see. Yellen said in a statement that  “This approach will support responsible innovation that could result in substantial benefits for the nation, consumers, and businesses“. 

She was referring to President Biden’s March 9 executive order that called for an investigation of the risks and benefits of cryptocurrency.

As soon as the statement was taken down, it was noticed that it was mostly positive and people reacted to it in the media and the world of crypto.

It says the Justice Department, Treasury, and other departments should look into the legal and economic consequences of making a central bank digital currency (CBDC) and setting up oversight of the crypto market, according to a report on the order.

The takeaway from the order is that cryptocurrency is the future, no matter what the White House thinks about it or how much it likes it or not.

The takeaway from the order is that cryptocurrency is the future, no matter what the White House thinks about it or how much it likes it or not.

“Digital assets, including cryptocurrencies, have seen explosive growth in recent years, surpassing a $3 trillion market cap last November and up from $14 billion just five years prior,” reads the order.

“The rise in digital assets creates an opportunity to reinforce American leadership in the global financial system and at the technological frontier, but also has substantial implications for consumer protection, financial stability, national security, and climate risk,”.

It also warns “An American approach to digital assets is one that encourages innovation but mitigates the risks to consumers, investors, and businesses, broader financial stability, and the environment”.

What did Yellen say to boost crypto?

Yellen has been, at best, ambivalent about cryptocurrency in the past. She has been told that it is a speculative asset, and she has expressed worries about its efficiency and potential for use in illegal operations. The need of addressing some hazards is discussed in her most recent statements, but she also acknowledges that there are potential advantages to helping this emerging business.

The need of addressing some hazards is discussed in her most recent statements, but she also acknowledges that there are potential advantages to helping this emerging business.

She said that the Financial Stability Oversight Council would be constituted to assess the possible financial stability risks posed by digital assets and decide if suitable protections are in place to mitigate such risks.

Her next statement hailed President Joe Biden’s “historic” executive order on Bitcoin, which she called “a watershed moment in American history.”

“This approach will support responsible innovation that could result in substantial benefits for the nation, consumers, and businesses.”

Janet Yellen

“President Biden’s historic executive order calls for a coordinated and comprehensive approach to digital asset policy,” said Yellen in a previous statement. “This approach will support responsible innovation that could result in substantial benefits for the nation, consumers, and businesses.”

Skeptics understand otherwise

It’s interesting to note that both bitcoin supporters and skeptics found something to enjoy in the sequence.

Faryar Shirzad, Coinbase’s chief policy officer, said that there are “reasons for hope” in a Twitter thread that was posted early Wednesday morning.

Among other things, he stated, “The White House seems to recognize and embrace the revolutionary potential of digital asset technology, as well as the imperative of retaining American leadership.”

Chairman of the Securities and Exchange Commission, Gary Gensler, also hailed Biden’s decision to resign.

According to a tweet from Gensler, he is looking forward to working with colleagues throughout the government to accomplish vital public policy objectives such as safeguarding investors and consumers, preventing illegal conduct, and assisting with the maintenance of economic and financial stability.

Senator Elizabeth Warren, who has long been a vocal critic of the cryptocurrency industry, had a slightly different perspective, and she provided additional insight into why the Biden administration may now be taking additional steps as a result of cryptocurrency’s role in Russia’s war in Ukraine, according to CNBC.

Sen. Warren said, “I’ve been sounding the alarm bell on crypto for a long time, from consumer protection to the environment to national security—especially since Russian oligarchs may utilize digital assets to circumvent sanctions.” “The President is correct in calling attention to the dangers of cryptocurrency, and we must enact tough regulations before it is too late.”

What this means for crypto

As a result of the government order, governmental authorities will be tasked with conducting a broad-ranging audit of the possible dangers and advantages of the cryptocurrency business, with a particular emphasis on the following main priorities:

  • consumer and investor protection;
  • financial stability;
  • illicit financing;
  • US competitiveness;
  • equitable inclusion;
  • privacy, security, and climate;
  • and consumer and investor protection.

The Department of the Treasury is entrusted with making policy recommendations for the United States cryptocurrency business, as well as publishing a study on the future of money and payment systems in the United States.

It is still unclear whether or if anything substantial will come out of Wednesday’s order. It does, however, seem to indicate that the Biden administration’s time spent mainly on the sidelines of the Bitcoin market has come to an end.

Clear crypto legislation in the United States, on the other hand, might be beneficial to the business in the long run.

Sources: [1] [2] [3] [4] [5].

© 2024 Cryptopress. For informational purposes only, not offered as advice of any kind.

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