Biden is set to nominate the former Fed Chair as the new Treasury Secretary

Written by: Jinia Shawdagor
November 24, 2020
  • According to the Washington Post, Yellen is the most preferred candidate for the Treasury Secretary’s office.
  • Yellen believes that financial regulators should allow blockchain and cryptocurrency projects.
  • It is still unclear how Yellen views crypto currently.

On Monday, the Wall Street Journal reported that Joe Biden, the current U.S. president-elect, is looking to introduce the Former Fed chair Janet Yellen to succeed Steven Mnuchin, the Treasury Secretary when he takes office early next year. However, all nominees will have to be vetted by the Senate.

Reportedly, Yellen, Roger Ferguson- the former Fed Vice-Chair, and Lael Brainard- Federal Reserve Governor are seen as the most preferred candidates. It should be noted that Yellen was responsible for running the U.S. central bank between 2014 and 2018 when it was facing relatively low inflation.

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Not a fan of bitcoin (BTC) but blockchain

Although past news quoted her as not being a huge fan of bitcoin (BTC), Yellen believes that financial regulators should allow cryptocurrency projects and blockchain. In 2015, she stated that regulators such as the Fed might have limited access to digital currency systems.

In 2017, she said that blockchain is an important part of the technology that can transform the way transactions are handled. Again, in 2018, Yellen stated that she was less interested in bitcoin itself, arguing that only a few transactions can be transacted using bitcoin where the majority of the transactions might be illegal.

Among the events that have significantly contributed to Yellen’s fame in the crypto community is the 2017 hearing when Christian Langal is writing on a legal pad “buy bitcoin” and showed it to the cameras was testifying.

When elected in the Treasury Secretary’s office, it is believed that she will work on changing the way financial regulators view crypto. Office of Foreign Asset Control (OFAC), Office of the Comptroller of the Currency, and the Financial Crimes Enforcement Network (FinCEN) are all the bureaus within the Treasury Department’s scope. Besides, it is also unclear how the former Fed Chair views crypto presently.