Biden Administration Hates Cryptocurrencies

Biden has selected Janet Yellen to lead the Treasury Department under its administration. Yellen stated that cryptocurrencies are a “particular concern” in countering terrorism. She believed that due to its decentralized nature crypto could very easily be used to fund terrorists.

Yellen gave this statement during her hearing for confirmation at the Senate. She replied to a question asked by Senator Maggie Hassan about cryptocurrency. Hassan asked what was Yellen’s opinion regarding terrorists utilizing cryptocurrencies to get funds for their activities.

Coindesk reported that Yellen thought that crypto is mostly used for transactions related to illicit activities. She said that they should be finding ways to minimize the crypto trade. That way it will assist the government in minimizing money laundering through this medium of trade she added.

Yellen has never been a fan of Bitcoin and she admits that. In her previous occupation as chair of the Federal Reserve she always showed disapproval for it. Her hatred for the cryptocurrency some saw arose since the famous photobombing incident of a Bitcoin fan. A man holding the sign “Buy Bitcoin” appeared behind her in an interview.

Bitcoin lovers, however, claim that Bitcoin is a far superior currency than the fiat currencies. Their claim is backed by the statement fiat currencies are controlled by countries and politicians. While the cryptocurrencies remain unaffected by the recessions and inflation in a state. This theory gained more popularity after central banks announced the printing of more currency notes to provide stimulus during the Covid-19 pandemic. The internet had not been kind to the central bank because of stimulus and a load of memes can be seen.

Though Yellen has openly discussed her view about cryptocurrency in pretty much every meeting. Yet that would not be her top priority when taking charge of her new office. On Tuesday, during the Senate hearing, she informed me that her top priority would be to help people in the pandemic. She said that the business community and workers have been hard hit by the pandemic and helping them would be top priority. She also talked about the unfair Chinese trade practices and monetary policies and how it affected the US economy.

Where Biden administration is welcoming anti-crypto administrators like Yellen, the crypto industry is optimistic about the appointment of Gary Gensler. Gensler a former executive at Goldman Sachs has also taught students of cryptocurrency at MIT. Gensler is to be appointed as the next Commissioner of the SEC. Appointment of Gensler at SEC would be good for the crypto industry but especially ripple may face some relaxation too. As we know Ripple Labs has been in hot waters for the last few months because of complaints from SEC.

It all may come down to what the new administration may think about the crypto industry. The proposed new rules imposing controversial conditions on crypto trade may depict the administration approach towards crypto.

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